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CEE not yet overheating, but risks are building

The sheer pace of GDP growth across Central and Eastern Europe in Q3 has raised a few eyebrows. For now, there are few signs that economies in the region are overheating. But we are becoming increasingly concerned that policymakers are falling behind the curve. If fiscal and monetary policy isn’t tightened soon, a build-up of macroeconomic imbalances is likely to become a growing threat to the outlook.

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