Among NMS, we can find various scenes of the economic crisis, ranging from countries with extremely serious crisis to countries with rather milder crisis. These countries can be classified into several groups, when we look at the extent of the fall in GDP growth rates. Some countries have experienced double-digit falls in GDP growth rates, starting with Lithuania at -18.8% to Bulgaria at -10.6%. It is in Lithuania, Latvia and Estonia that GDP growth rates continued to make double-digit falls in 2009. These three countries belong to a group which is hardest hit by the crisis.

Although there are certain influences from the global financial crisis, depression is milder in the Czech Republic and Poland compared with the Baltic States. In other countries, the magnitude of the impact is in the mid-level range in the Baltic States, and in the Czech Republic and Poland.

The share of loans denominated in foreign currency of all total loans has been exceptionally high in the Baltic States, especially in Latvia and Estonia, which ranged from the 80% mark to nearly 90%, and in Latvia it exceeded 90% in 2009. In Lithuania, Hungary and Romania it accounts for about two-thirds of total loans. In Bulgaria, it has been fluctuating on the 50% mark. In Poland, it increased from a quarter to one-third of total loans during the period April 2008 through April 2009. It is noteworthy that in three, countries that are Czech Republic, Slovakia and Slovenia it has been remarkably low.

Among countries relying on foreign capital, the Czech Republic has not suffered such serious damage. In this country the share of loans denominated in foreign currency of total loans is low. The exposure of the Czech banks to sub-prime securities is negligible. Despite quite vigorous GDP growth, the domestic credit expansion has been rather sluggish when compared with other NMS. The deposit/loans ratio exceeds 1 by a large margin, and the net external position of Czech banks is positive (unique among the NMS). Moreover, unlike the situation in other NMS, loans denominated in foreign currencies were not attractive since Czech interest rates have tended to be lower than the foreign ones (Richter, et al. 2009, p.13).

Among NMS in Central and Eastern Europe, only Poland managed to maintain positive GDP growth in 2009. One of the reasons is that depreciation of domestic currency enhanced competitiveness and absorbed the shock to a certain extent. This point is shared with some other NMS. What makes Poland different from the other NMS? Richter, el al. (2009) mention the following points : i) the country's size; ii) its relatively low levels of exports and imports; iii) a production structure more diversified than in other NMS, and iv) Poland's domestic financial system appears to be in good shape with debt levels (of households, the government and corporate sectors) significantly lower than elsewhere. In addition to these points, we can add another factor: This country has had a relatively high share of people engaged in agriculture (19% of all employed people in 2004) and enjoyed higher prices of agricultural products after EU accession as well as support from the Common Agricultural Policy (CAP) of the EU. Therefore, domestic demand has been kept in good shape.

With fixed exchange rates countries adopting the euro, or with a national currency pegged to the euro or currency board regime could not mitigate the shock through depreciation of their national currency and suffered severely. Among them, however, countries with fiscal room such as Bulgaria and Slovenia were able to increase their budget expenditure to stimulate their domestic demand and; therefore, were able to mitigate the shock.

In countries with floating exchange rates, and where the share of loans denominated in foreign currency of all total loans was relatively small, for instance, the Czech Republic and Poland. The shock was also relatively small. In addition, the Czech Republic was able to adopt anti-cyclical policies by increasing budget expenditure. In contrast, however, countries where the share of loans denominated in foreign currency of all total loans was higher in Romania and Hungary, the shock was relatively large.
One country with a floating exchange rate, a higher share of loans denominated in foreign currency of all total loans and, in addition, a higher share of public debt compared with the GDP of Hungary was not able to afford to undertake deficit spending, and in consequence its economic policies have become pro-cyclical, resulting in a more serious situation.

Since the Baltic States have had not only fixed exchange rates (currency board regime in Estonia and Lithuania, and euro-peg in Latvia), but also a vast amount of current account deficit, relatively large external debts, a remarkably high share of loans denominated in foreign currency for total debts. Their economies have been particularly vulnerable to external shocks.