The transition economies in Central and Eastern Europe offer great opportunity for investors. However, to take advantage of these promising growth markets, investors will have to overcome the legacy of the Iron Curtain economies. The outlook for economic development is Central and Eastern Europe is encouraging. Real GDP growth in Central Europe now exceeds that of Western Europe. Year-on-year GDP growth in Eastern Europe is expected to be as high as 8 percent in 2003. Western companies are migrating to both Central and Eastern Europe, where they can take advantage of emerging markets, skilled workforces, and low operating costs. This migration is driving economic development, and creating demand for high quality steel products and services from global steel producers. As investors move into Central and Eastern Europe, the success of their business operations will be challenged by the legacy of Iron Curtain bureaucracies, economics, and corruption.
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