NEWSWATCH: “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. … 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. * * * For experts … the big question for the CESEE region is whether the last quarter of century of convergence towards Western living standards and free-market politics is beginning to reverse as the scars of the financial crisis and regional spats struggle to heal.

Click here for Reuters: Worst may be over for Russia, risks rising in central Europe: IMF.