by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com
Eastern Europe used to be regarded by Western European coatings producers as the buoyant market on their doorstep –
in which demand could be depended upon to
boost their sales especially at times of sluggish
domestic growth.
Now, however, much of Eastern Europe is
no longer playing the role of the helpful neighbor. Many countries in the region are having
the sort of economic difficulties that are dampening demand for coatings in their Western
European counterparts.
In the five years to 2007 GDP growth was
in most Eastern European countries more
than double that of the annual average for the
European Union of 2.5 percent.
Since 2008, the gap in GDP growth rates has
narrowed dramatically, with GDP rises in some
Eastern European countries even falling below
the EU average.
The economies of new Eastern European entrants into the EU have not so far gained the sort
of impetus that other Eastern European states
have enjoyed from membership. The average
rate of GDP growth has declined in Romania
and Bulgaria since they joined in 2007.
“Some of the weaker Eastern European
economies are taking far longer to recover from
the 2008 economic crisis than expected,” explained Armodios Yannidis, vice-president of
the Greek coatings producer Vitex-Yannidis
Group which has been expanding its decorative
paints operation into southeastern Europe.
The Eastern European construction sector, the
mainstay of coatings demand, has been struggling
to return to the relatively high investment levels before 2008. In some countries construction
Since 2008, the
gap in GDP
growth rates
has narrowed
dramatically, with
GDP rises in some
Eastern European
countries even
falling below the
EU average.
Eastern Europe Economic Difficulties
Dampen Demand for Coatings
