IMF: Eastern and Southeastern Europe to Record 3.5% Lower Growth Than Expected

Eastern and Southeastern Europe are facing deep economic “scarring” and a high inflation with a weak economic growth, said the managing director of the International Monetary Fund (IMF), Kristalina Georgieva.

– Turning to growth, the region is facing deep economic scarring – Georgieva said at the conference organized in Dubrovnik by the IMF and the Croatian National Bank.

According to the current IMF projection for 2024, excluding Belarus, Russia, and Ukraine, the region’s real GDP levels are projected to be 3.5% lower than what the IMF had expected at the beginning of 2020, that is, right before the pandemic broke out, reports Capital.ba.

– It is like taking EUR 50 billion out of peoples’ pockets over these five years – Georgieva said.

She said that persistently high inflation and weak growth remained the principal challenges for the region.

– We project inflation will stay well above central bank targets past 2024 – Georgieva concluded.

International Monetary Fund

IMF

Croatian National Bank

Kristalina Georgieva

Dubrovnik

economic growth

inflation