World bank warns E. Europe states risk overheating

...correction in growth, the World Bank said on Thursday.

"If we look beyond 2007, the risks seem to be magnified. We see a real risk of a sharp correction in Latvia, Estonia but also in Bulgaria and Romania," the World Bank's lead economist for the region Thomas Laursen told a news conference.

"This calls for efforts on structural reforms and to avoid pro-cyclical policies and (for) policies to discourage household borrowing."

[WARSAW/Reuters/Finance.cz]