Central Europe needs reforms to boost slowing growth potential, IMF says

Central and eastern European countries require reforms to enhance economic growth, facing demographic pressures and increased competition from Chinese exports, according to the IMF's regional representative. The region's medium-term growth outlook has dropped to an average of 2.5% by 2026 from about 5% prior to EU accession. The IMF representative highlighted the need for diversification of trade, addressing demographic decline through increased labor market participation, and accelerating AI innovation.