IMF’s deputy European head, Aasim Husain says that central, southern and south eastern Europe is only likely to see a “tepid” recovery this year and will likely lag other emerging markets even if major economies rebound.
He cited non-performing bank loans as a drag to growth though said they could top out this year. He says that growth in the emerging Europe area will be around 2.5% in 2014 which compares to a 1.75 estimate for 2013.
He added that countries with large current accounts and fiscal imbalances still risked market buffeting as central banks unwound extra loose policy.
