IMF warns of wage growth risks and inflation concerns in Europe

The International Monetary Fund (IMF) has warned that the rapid wage growth in Eastern Europe could potentially erode the region's competitive edge. While higher wages are generally positive for workers, the IMF cautions that they could lead to rising inflation and reduced competitiveness for Eastern European countries, particularly in industries that rely on low labor costs. The IMF recommends that policymakers focus on productivity-enhancing reforms and targeted social policies to mitigate these risks.