World bank warns E. Europe states risk overheating

25.01.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

Several of the European Union's former communist member states must temper policy to ensure their economies do not overheat and risk a sharp...

...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]

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