FRANKFURT: Current economic trends in Western and Eastern Europe are back to a familiar pattern of the past fifteen years: divergence. In the West, the picture is of economic pessimism and downward forecasts. Even if hopes for a recovery later this year materialize, GDP growth in EU countries will be down a third on last year. In the East, a growing number of economies -- exceptions come in the CIS, though Russia is starting to grow -- are expanding fast. Countries that tackled reforms in earnest should grow 5% or more for the next few years at least.
FRANKFURT: Current economic trends in Western and Eastern Europe are back to a familiar pattern of the past fifteen years: divergence. In the West, the picture is of economic pessimism and downward forecasts. Even if hopes for a recovery later this year materialize, GDP growth in EU countries will be down a third on last year. In the East, a growing number of economies -- exceptions come in the CIS, though Russia is starting to grow -- are expanding fast. Countries that tackled reforms in earnest should grow 5% or more for the next few years at least.