Poland among the most vulnerable CEE countries post-Brexit

A brexit heat map compiled by rating agency Standard and Poor's suggests that Lithuania, Latvia, Hungary, and Poland are the most exposed CEE countries if the UK leaves the EU, given their large migrant populations, remittances, trade links, and the importance of EU funds to finance investment, the agency said in a report. S&P expects that the UK's exit from the EU, if confirmed, would lead to a significant reduction in transfers to newer member states. Poland, whose nationals make up the largest number of immigrants in the UK in absolute terms, and which receives the biggest chunk of EU structural funds in nominal terms, comes fourth. Polish immigrants in the UK make up about two percent of Poland's population, compared with more than 5 percent for Lithuania and Latvia. If Brexit were to disrupt remittance inflows, Lithuania and Latvia may be the hardest hit. This is not only because of the size of their diaspora relative to their national populations, but because they receive more in remittances (1 percent of GDP on average) from the UK than other countries in eastern Europe (0.2 percent of GDP on average). Indeed, a recent study indicates that Romania, Poland, Bulgaria, and Lithuania receive surprisingly little by way of remittances, even though a large number of their nationals live abroad, S&P said.