CURRENT ACCOUNT DEFICIT AND THE ECONOMIC GROWTH IN VISEGRAD COUNTRIES

Abstrakt

The article is devoted to current account deficit and economic growth in Visegradcountries. At the present stage we have all prerequisites to talk about the assessment of theeffectiveness of transformational changes that have occurred in the region. However,accession to the EU and the abolition of internal borders, paradoxically, radicallyweakened domestic interest in Central European neighbors.Nevertheless, Visegrad statescontinued its development in the frame of large Europe.It is worth mentioning the high volatility of FDI in Hungary and Poland, whichemphasizes the new discussions about the influence of FDI and portfolio investments onthe Visegrad countries vulnerability.Using impulse response function we discovered the different impact of currentaccount to GDP growth. The positive effect was detected only for Slovakia that has lowestnet international investment position along with foreign debt and high rate ofunemployment.The method we implemented could be used for identifying the impact financialaccount and capital account on GDP.