Economic security

Worst may be over for Russia, risks rising in central Europe: IMF

The worst of the economic slump in Russia may be over the International Monetary Fund said on Friday, but warned possible euro zone stagnation and shifting politics made central Europe's prospects increasingly uncertain.

The IMF's twice-yearly regional outlook for Central, Eastern and Southeastern Europe (CESEE) said the rise of populist parties in some countries as well as limp global growth and aging populations were all aggravating the strains.

Using forecasts produced last month, it said growth in the central channel from Poland down to Turkey would remain as healthy as 3-4 percent this year, whereas Russia and most of its former Soviet neighbors would stay in recession.

But it is likely to be a period where the balance shifts, with the former group likely to see a slight slowdown going into next year and Russia et al perking up with a return to growth.