The IMF has warned rapid wage increases in central and eastern Europe risk eroding the region’s competitive edge.
Incomes have risen at double-digit levels in many countries in the region recent years, but the fund says productivity has largely stalled.
Alfred Kammer, head of the European department of the IMF, told the Financial Times the trend “could create a competitiveness problem” for a region that has benefited from western European companies relocating production there.
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