Economies in central, eastern and south-eastern Europe (CESEE) are poised to overtake the continent's traditional economic powerhouses like Germany and France in terms of rate of growth and employment, according to the International Monetary Fund (IMF).
In its latest regional report on Europe's emerging economies from Albania and Serbia to Latvia and Lithuania and eastern European countries such as Romania, Poland and Hungary, the IMF said that CESEE economies were so far showing themselves to be resilient in the face of external pressures.
"Despite weaker external demand, most of the region outside the Commonwealth of Independent States (the CIS, which includes Belarus, Moldova, Russia and Ukraine) continues to record solid growth, with unemployment rates now approaching pre-crisis levels," the IMF said in its report published on Friday.
It said robust growth continued in most central and southeastern European economies, as well as in Turkey ,despite problems plaguing wider Europe such as deflation in the euro zone.
"Accommodative macroeconomic policies, improving financial intermediation, and rising real wages have been behind the region's mostly consumption-driven rebound, while private investment remained subdued. In the near-term, strong domestic demand is expected to continue supporting growth amid continued low or negative inflation," the IMF said.