Eastern Europe Q1 Outturns

As expected, most countries in Central and Eastern Europe (CEE) performed well in Q1, amid favourable trends in internal and external demand. A cyclical upturn in the euro zone and a better utilisation of EU infrastructure funds should ensure that growth is underpinned during the rest of 2017. Yet wage pressures and reform stagnation have cast doubts over productivity and the medium term outlook. In Romania, a shift toward more populist government policies has threatened to undermine public finances and economic stability.

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