Regional Economic Reports

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These reports discuss recent economic developments and prospects for countries in various regions. They also address economic policy developments that have affected economic performance in the regions, and discuss key challenges faced by policymakers. They address regional policy developments and challenges, and provide country-specific data and analysis, including through analytical pieces on issues of interest to a particular region.

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Central, Eastern, and Southeastern Europe: Regional Economic Issues
Date: October 2013
The October 2013 Regional Economic Issues Report (REI) discusses the implications of the recent turmoil in Central, Eastern, and Southeastern Europe (CESEE)'s emerging markets. What are the implications of the turmoil in emerging markets for Central, Eastern, and Southeastern Europe (CESEE)? Why have some countries been more affected than others? The October 2013 CESEE Regional Economic Issues (REI) assesses the macroeconomic outlook for the region in light of the latest global economic and financial developments. The REI also focuses on prospects for longer-term potential growth, and the policies and reforms that will be needed to boost growth and bring down on a sustained basis the relatively high rates of unemployment across much of the region.

Central, Eastern and Southeastern Europe -- Financing Future Growth: The Evolving Role of Banking Systems in CESEE
Date: April 2013
This is the first issue of a new publication "Central, Eastern and Southeastern Europe Regional Economic Issues." This new series, produced by the IMF's European Department, contains analytical, one-off pieces on issues of interest to the CESEE region. We hope this new series will enrich the economic debate within this important region, and prove useful for policy makers, academics, and the broader public alike. This issue takes up the topic of "Financing Future Growth: The Evolving Role of Banking Systems in CESEE." It discusses the important role that foreign banks, mainly from Western Europe, have played in the banking systems of CESEE, both in terms of ownership and funding, and raises the question to what extent banking in CESEE will change as a result of the global economic and financial crisis. This paper was prepared for a joint IMF/Czech National Bank Conference on the same topic, which took place on April 26th in Prague.

Regional Economic Outlook: Europe
Date: October 2011
Following a strong showing in early 2011, the economies across Europe now face the prospect of a pronounced slowdown, as global growth has softened, risk aversion has risen, and strains in Europe’s sovereign debt and financial markets have deepened, according to the Regional Economic Outlook: Europe. Downside risks are significant, and a further deepening of the euro area crisis would affect not only advanced Europe, but also emerging Europe, given its tight economic and financial ties. The policy stance in advanced Europe will need to be adapted to reflect the weakening and tense outlook, financial systems strengthened further, and a consistent, cohesive, and cooperative approach to monetary union adopted by all euro area stakeholders. The cross-country experience in the past decade in Europe shows the difference that good policies can make in boosting growth, with some European countries having grown rapidly while others have stagnated. Escaping low-growth traps, through broad-based reforms that address macroeconomic imbalances and country-specific structural rigidities, is possible.

Regional Economic Outlook: Europe
Date: May 2011
The May 2011 Regional Economic Outlook: Europe anticipates that recovery in the region will solidify, with recoveries in advanced and emerging Europe likely to be mutually reinforcing. Advanced Europe continues to absorb most of emerging Europe's exports, while the role of emerging Europe as a market for advanced Europe will expand. Chapters discuss the outlook and policy priorities for advanced and emerging Europe, and analyze the role of financial integration in the buildup and resolution of imbalances within the euro area.
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Regional Economic Outlook: Europe
Date: October 2010
The recovery in Europe continues, supported by strong policy action to contain sovereign debt problems in the euro area. In advanced Europe, lingering uncertainties and market pressures make for moderate and unequal growth, creating challenges for macroeconomic and financial sector policies. The REO also sheds light on the governance issues revealed by the crisis, arguing that better policy frameworks, in particular at the euro area level, promise a stronger Europe. For the first time, the REO devotes a separate chapter to the outlook for emerging Europe, where, after a deep recession, an export-led recovery is under way. However, the rebound is uneven across the region, and policymakers face the difficult challenge of dealing with the legacies of the crisis, while not hurting the recovery. Beyond the short term, the REO argues that the region will need to find new growth engines, as the capital inflows-driven and credit-fueled domestic demand boom needs to give way to more balanced growth. Indeed, the REO emphasizes that active fiscal policy and coordinated prudential measures are key to avoiding a repeat of the boom-bust cycle the region has just endured.
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Regional Economic Outlook: Europe
Date: May 2010
A weak and uneven recovery is underway in Europe. Macroeconomic policies still support the upswing and extraordinary measures are underway to address the sovereign crisis. Now policymakers face the difficult balancing act between continuing their support for the economy and establishing a credible path to policy normalization. Priorities are large medium-term fiscal consolidations and, in the financial area, a shift from systemic support to interventions in individual financial institutions. Structural weaknesses also need to be addressed, including the revamping of financial sector regulation and supervision, improvements in the functioning of products and labor markets, and filling gaps in the euro area's fiscal governance. For emerging Europe, policies that facilitate a reorientation of the sources of growth toward the export sector and attract healthy capital inflows are key conditions to restart income convergence.

Regional Economic Outlook - Europe: Securing Recovery
Date: October 2009
Europe's contraction is ending, but the recovery is fragile. Policymakers should look beyond the crisis to secure a durable upswing and address the threats to potential growth from the crisis and the continent's well-known structural rigidities. The report's analytical work stresses the uncertainty surrounding potential growth estimates, and the more volatile environment faced by emerging economies in a tightly integrated region. In the near term, this calls for measures to restore the financial sector to health and for continued macroeconomic support, while preparing for the exit from extraordinary interventions in a coordinated and transparent fashion. Higher longer-term growth through structural change will support the recovery, smooth the exit, and help emerging markets to adjust to lower capital inflows in the crisis' aftermath. Published biannually in May and October.

Regional Economic Outlook: Europe
Date: May 2009
Europe is in a deep recession. Adverse feedback between the financial and real sectors and across borders is likely to delay the recovery and create downside risks. Unprecedented policies have been undertaken to address the crisis-but are they likely to be successful and sufficiently coordinated for a tightly integrated region? To restore trust and confidence in financial markets, additional and forceful action will be essential. Maintaining fiscal support should help soften the downturn, in particular if sustainability is supported by solid medium-term strategies and fiscal frameworks. To be effective, these policies require coordination across advanced and emerging economies. The report's analytical work underpins the link between fiscal sustainability, coordination, and effectiveness, and stresses that emerging markets have been affected differently by the crisis, with the quality of policies and external vulnerabilities being key factors.

Regional Economic Outlook: Europe
Date: October 2008
The financial crisis has reached extraordinary proportions in recent months. At the same time commodity prices increases have boosted headline inflation, depressing consumption. Growth is expected to stagnate in the near term in most advanced European economies as asset price booms deflate and banks curb credit to reduce leverage. Growth will slow down significantly in the emerging economies in Europe as well. Mutually reinforcing deterioration in financial and economic conditions is the main downside risk to the outlook. Stabilizing financial conditions and nurturing growth are the key policy priorities. In addition to the outlook, the report presents analytical work on the impact of high commodity prices, the turnaround in the credit and asset price cycles, and the macroeconomic effects of cross-border labor flows.

Regional Economic Outlook: Europe
Date: April 2008
Europe is facing slower growth as a result of protracted financial turbulence and spillovers from the U.S. Meanwhile, inflation has risen sharply. Policymakers in advanced economies will have to continue to support financial markets and balance risks to real activity with the need to anchor inflation. Emerging Europe is well placed to continue to grow, albeit at a slower pace, amid concerns about overheating and external imbalances in several countries. Sound macroeconomic policies and structural reforms will be necessary to ensure a soft landing in these countries and smooth convergence throughout the region.
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Regional Economic Outlook: Europe
Date: November 2007
Strong fundamentals should allow Europe to weather financial turbulence relatively well. Nonetheless, growth is set to ease in 2008 in nearly all countries. Policymakers will need to deal up front with the financial market turmoil, while implementing fiscal consolidation and structural reforms, including in the financial sector, to address vulnerabilities, raise medium-term growth prospects, and deliver on the promise of convergence for emerging Europe. Three analytical chapters discuss reforms to strengthen Europe's financial systems to allow advanced economies to benefit from innovation without incurring excessive risk and, in emerging economies, to manage rapid financial deepening and develop financial systems further.
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