The past couple of days have seen a rebound in the region’s financial markets, but this has reversed only a fraction of the losses seen over the past month. Most equity markets, for example, are still down by around 10% on the start of September, and around 20% on the start of the quarter. The turmoil in markets has, of course, been driven by concerns about the deepening crisis in the euro-zone, to which Emerging Europe is heavily exposed via deep trade and financial ties. But an often overlooked point is that, at the same time, leading indicators of growth in the region have continued to soften. In short, the outlook is pretty grim.