The International Monetary Fund (IMF) has emphasized the need for Central, Eastern, and Southeastern Europe (CESEE) to address ongoing challenges and capitalize on new opportunities in a changing global economic landscape. During a conference in Dubrovnik, key issues were highlighted, including the importance of reforms and integration with the European Union.
The IMF acknowledged the significant progress made by CESEE countries over the past three decades. "Over the last three decades, reforms promoting economic openness and integration—first with the EU, then within the EU—have helped the countries of Central, Eastern and Southeastern Europe achieve a remarkable convergence with the standards of living of their more advanced peers," stated an IMF representative.
However, it was noted that there is still work to be done. "Reforms slowed after EU accession. After the Global Financial Crisis, investment fell significantly and contributed to a productivity slump that has only worsened since Covid," they said.
New global economic disruptions pose additional challenges. "World trade is being tested...these disruptions pose a major threat to the region’s main trading partners and to the overall economic model of openness that CESEE countries rely on," warned the IMF.
To navigate these challenges, three priorities were outlined: stabilizing macroeconomic environments to mitigate uncertainty; boosting growth potential through domestic reforms; and retaining benefits from economic integration with Europe and globally.
The IMF reaffirmed its support for CESEE nations. "We at the IMF stand ready to support you...Through our surveillance and technical assistance, we are committed to supporting the CESEE region unlock its growth potential."
The call to action was clear: "The time to act is now. By moving decisively, you can transform the current challenges into opportunities and chart a brighter future for the region."