ERPF December Factsheet Now Available
TRI wishes all investors a very Happy Christmas and New Year.
With 2009 ending much the same way as 2008 (lack of credit & recession) the past two years has undoubtedly proved an extremely challenging period for many European property markets.
As many turn to celebrating Christmas, December is traditionally a quiet month for property investment & disposals. A close run Romanian Presidential election reported in last month’s fact sheet saw a narrow victory to the incumbent President Traian Basescu. President Basescu won 50,33% of the vote, while his run-off opponent Mirces Geoana took 49,66%. Voter turnout was 58,02%. President’s Basescu’s will appoint a new Prime Minister to reconvene the Romanian parliament and attempt to restore some political and economic confidence and, as importantly greater international co-operation and financing.
With such a narrow victory, Romanian decision making may well continue to be challenging at a time when clear direction is required. President Basescu will need to draw on all his Experience to drive Romania away from its current political and economic challenges. In the short term therefore TRI continues to believe that Romania’s economic outlook remains fragile and given this, the Fund continues to gradually reduce its exposure to this Country.
In Poland, where the Fund also has significant property exposure, the economic outlook continues to be materially more positive when compared to Romania. While Polish GDP growth forecasts for 2010 remain modest, according to the European Commission (EC) they expect the Polish economy to rebound in 2011, when GDP would rise by 3.2%.
The EC said “the main drivers of this recovery are the recovery plan, the gradual rebound of global trade, and softer monetary conditions – reflecting monetary easing and the easing of financial stress in international capital markets?
More information is available in the ERPF December 2009 Factsheet
