Romania, among countries set to overtake European economic powerhouses

Romania is one of the Eastern European countries that could soon be outstripping the likes of Germany and France in terms of economic growth, the International Monetary Fund (IMF) has claimed, quoted by express.co.uk.

The latest regional report of the financial institution suggests economies in central, eastern and south-eastern Europe (CESEE) are showing robust growth coupled with falling levels of unemployment.

“It comes as the traditional economic powerhouses of France and Germany reached new lows in terms of growth forecasts. Sentiment between Germany and the European Central Bank reached an all-time low this week after Mario Draghi lashed out at German leader Angela Merkel. German savers and pensioners are currently being hit by the ECB’s policy of maintaining negative interest rates. In a bid to revitalise ailing nations, Mr Draghi unleashed a fresh round of money-printing, injecting billions of pounds worth of cash into the economy in a bid to kick-start growth,” the quoted source notes.

IMF predicted that it was Eastern European countries that would grow most this year, forecasting levels at 3 to 4 percent. That’s in comparison to some of the supposed European superpowers, with the European Commission last week cutting its 2016 growth forecast to 1.6 percent.

The average growth rates across the developing region is however still well below the pre-2008 crisis and it could be some time before it catches up with the rest of advanced Europe in real terms.

The Fund said much of the growth has been driven by domestic consumption, thanks to “supportive macroeconomic policies” and a rise in real wages.

But it warned that a stagnating Eurozone, the largest trader for many CESEE countries, could bring growth to a halt.