Abstract

When the IMF’s October 2008 World Economic Outlook went to press in early September of that year, signs had appeared showing that activity and domestic demand had started to moderate in the emerging Europe region, leading to lower projected growth rates for 2009 (Figure 3.1 and Table 3.1). The region had been relatively resilient to the financial turmoil in advanced countries until then, but it was now facing tighter financial conditions, and the Baltic economies were slowing sharply against a backdrop of large economic imbalances and more discerning investors.

An Account by the Staff of the IMF's European Department
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