It falls from 57 to 52. The Czech Republic, at 45, is still in the grip of recession. Growth is slow, interest rates are high, unemployment is rising, and budget imbalances are deteriorating. Nevertheless it stands at the forefront of the reform process, as it pushes ahead with privatization plans and develops a more open currency market. Next year its position should improve.
Russian fallout continues The Baltic states are struggling with the fall-out from Russia.
Estonia, Latvia and Lithuania have all lost ground over the last 12 months. The line-up of countries entering in the next wave may well be broadened to include the Baltics, as well as the Slovak Republic. In the past two surveys, attention has focused on the dramatic fall of Russia. Although it ranks very low at 159, it has managed to rise two places since March. Economic forecasts are still downbeat because the country must contend with high unemployment, a budget deficit, structural imbalances and political instability.