Europe's Paper Tigers

Touted as Europe's economic tigers because of years of strong growth, the new, formerly communist European Union members are beginning to be a burden for their Western neighbors as foreign capital dries up. Scared by huge current account deficits and levels of external debt, investors are turning their back to the countries, which until a little more than a year ago were offering double-digit yields on investment in stocks, real estate and currencies.

Photo: AP Population: 7.6 million GDP per capita: $5,176 Current Account Deficit: 18% of GDP Bulgaria's external debt was more than 100 percent of GDP before the crisis struck, but its public debt was relatively low, at around 18 percent. The country has faced protests from farmers against poverty, and its economy is expected to take a hit because its fixed peg to the euro does not allow devaluation.

Photo: AP Population: 10.5 million GDP per capita: $16,815 Current Account Deficit: 2.9 % of GDP The Czech Republic, which has a floating currency, is the EU country least affected by the crisis, having managed to keep its current account deficit in check and its public debt at a low level. Government debt was around 29 percent of GDP at the onset of the crisis, while the country's external debt made up about 44 percent of GDP.

Photo: Steve Jurvestson Population: 1.3 million GDP per capita: $15,567 Current Account Deficit: 11.7% of GDP Estonia, which also has a fixed-exchange-rate regime, saw its economy shrink by 9.7 percent in the fourth quarter of last year, and it forecasts a drop of 8.5 percent this year. At 3.5 percent of GDP, its public debt was low at the onset of the crisis, but its total external debt was 120 percent of GDP.

Photo: AP Population: 10 million GDP per capita: $13,766 Current Account Deficit: 5.9% of GDP Hungary became the first of the former 'Tigers' to receive bailout funds from the International Monetary Fund and the European Union as its currency fell under speculators' attacks. Its public debt stood at 66 percent of GDP before the crisis hit the region, while external debt was more than 90 percent of GDP.

Photo: Colin Cameron Population: 2.3 million GDP per capita: $11,906 Current Account Deficit: 12.6% of GDP At 143 percent of GDP, Latvia's external debt was the highest in the region at the beginning of the crisis. Its public debt was low, at 9.5 percent, but its economy deteriorated rapidly and it received billion in IMF aid. Latvia's currency, the lat, is pegged to the euro. Its GDP is seen shrinking by 13 percent this year.

Photo: AP Population: 3.4 millionGDP per capita: $11,352Current Account Deficit: 13.9% of GDPIn January, police fired tear gas at demostrators protesting against budget cuts in Lithuania, whose finance minister said he expects the economy to shrink by 10.5 percent this year. Compared with its Baltic neighbors, Lithuania's debt problem has been smaller: External debt was nearly 80 percent of GDP, while public debt was 17 percent.

Photo: AP Population: 38.1 million GDP per capita: $11,037 Current Account Deficit: 5.2% of GDP The floating Polish zloty has also been hit by capital flights from the region, but Poland seems to be in a better position to withstand the crisis, as it entered it with relatively low external debt, at 55.2 percent of GDP, while its public debt stood at around 45 percent. But it may access a flexible credit line from the IMF, according to some reports.

Photo: www.sibiu.ro Population: 21.5 million GDP per capita: $7,636 Current Account Deficit: 14% of GDP Romania's positively low public debt, at 13 percent of GDP, and relatively low external debt, at 42 percent, was offset by a huge current account gap; the exchange rate, which is allowed to float but is corrected by central bank interventions from time to time, has depreciated sharply. The country recently signed an agreement with the IMF for billions of dollars in aid. Start Slideshow from BeginningReturn to Full Special Report: Eastern Europe on the EdgeData: EBRD, end-2007 for all but the current account deficit, which is also EBRD but a projection for 2008.