Preliminary estimates of Q1 GDP have so far confirmed our view that the regional growth outlook remains strong. Growth in Russia accelerated to nearly 8% in the last quarter, only marginally slower than the 8.9% achieved by Slovakia – the shining star of Central Europe. Elsewhere, the Baltics continue to expand at a breakneck speed and the slight moderation in Latvian GDP growth will do little to ease concerns about overheating. The exception is Hungary, where fiscal tightening has caused growth to drop to its slowest rate in ten years.