Chernobyl Nuclear Power Plant CIA Files - Paperless Archives
Chernobyl Nuclear Power Plant CIA Files - Paperless Archives
Chernobyl Nuclear Power Plant CIA Files - Paperless Archives
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EASTERN EUROPE:<br />
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EconornlSl Stili Struggling<br />
Recently re/es3ed data show Eastern Europe'3 economic<br />
performance for"the lul"i.li.1986 Improved little over last<br />
year's poor Showing. __ __ --<br />
The hard currency deficit for the region was an estimated S900 mililor!<br />
as increases In Imports, especially from the West, outstripped export<br />
growth; in contrast, there was a slight surplus for the first quarter of<br />
1985. The trade gap was particularly large for Hungary, Bulgaria, and<br />
Czechoslovakia. Oftlclals In several countries have expregsed<br />
disappointment with the trade figures, especially because economic<br />
plans h~ed redUCing hard currency Imports and expanding<br />
exports .........<br />
FIrst-quarter Industrial growth fell below the annual rate for 1985.<br />
Encouraged by a relatively moderate Winter this year, East European<br />
regImes hoped for stronger showIngs as they began new five-year<br />
OfficIal crIticIsm of 11~~'n~th~e~c~z~e~c~;ilji~~~<br />
harsh, and~<br />
ngary's G<br />
Prospects for these economies over the rest of the year<br />
Declining 011 prices In the West have cut demand tor<br />
the region refined all products and reduced the ability of Third<br />
World oil producers to buy tram Eastern Europe. Tourism and food<br />
exports to Western Europe have also suffered Since the <strong>Chernobyl</strong>'<br />
accldent._<br />
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The slow Industrial growth and the deCline In hard currency trade<br />
performance Indicate that the regIon's recovery from the economIc<br />
stagnation and finanCial problems of the early 1980s Is running out of<br />
steam. Further poor trade results may make bankers more cautious in<br />
lending to Eastern Europe. With the Soviets pushing Eastern Europe<br />
to Increase economic growth and poor 1986 results already<br />
apparently thrOWing the new five-year plans off schedule, East<br />
European leaders w//I come under Increasing press~ke L ~<br />
~n addreSSing economic prOblems.... D ...,I<br />
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7 July 1986<br />
..