Fatter East European Wallets Drive the Catch-Up With Richer West

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Fatter East European Wallets Drive the Catch-Up With Richer WestConsumers emboldened by rising wages and government spending helped propel the European Union’s ex-communist economies to unexpectedly strong growth at the start of the year. The bloc’s eastern wing showed resilience to global trade tensions and manufacturing weakness in Germany, the key market for its exports. Domestic demand has replaced exports as the main driver of eastern Europe’s convergence with richer western nations.


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