Its importance in the global economy is likely to increase, and it is probable that, one way or another, its growth will result in its playing a more decisive role in the international economy and in international economic institutions. Finally, we need to remind ourselves that geopolitical factors will play a critical role in the unfolding of that process.
•  Second, external imbalances remain large throughout most of Southeastern Europe, with current account deficits at higher single-digit or even at double digit levels. Although these deficits are to a significant degree financed by foreign direct investment inflows, the region remains heavily reliant on external finance. This exposes the countries to interest rate developments in industrial countries and to changes in investor sentiment.