IMF estimates tough period for emerging Europe

Emerging Europe is facing increasing economic stresses that threaten to unwind some of the political progress made over the of past decades, Poul Thomsen, the head of the International Monetary Fund (IMF) European Department said on Tuesday, according to Reuters. Central and Eastern Europe's economic growth potential has halved in the past decade, with the rapid outflow of skilled workers being an increasing drag, added Thomsen. Half of the companies active in the Hungarian industry and a quarter of the Polish ones claim that the shortage of workers limits production and discourages investment, according to opinion polls. Several companies in Romania have also been complaining about that. The IMF estimates that 20 million people have left Central and Eastern Europe in recent decades, accounting for roughly 5% -6% of the population. The IMF official mentioned that some of the governments in the region are questioning the benefits of European integration. For example, the EU is in conflict with Hungary because of refugees, among others. Poul Thomsen also said that the convergence between the Western countries and the Eastern ones has slowed down or even stopped. The pattern raises questions about the validity of the economic and political reforms in the region. editor@romania-insider.com