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Growth outlook looks good; Hungary is the exception (Q1 2007)

The growth outlook across Emerging Europe remains positive. The region should grow by around 6% this year, slower than the 6.5% expansion achieved last year. Strong credit growth and FDI inflows will support demand and, on the supply side, productivity growth remains impressive. What’s more, per capita GDP levels suggest that the process of convergence has further to go and the forces of catch-up will remain powerful for some time to come.

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