Deepening problems in the euro-zone continue to take their toll on Emerging Europe. Most of the region’s economies appear to have weakened in Q2. Even the region’s strongest performers, Russia and Poland, are starting to see the first signs of a slowdown. At the other end of the scale, the highly open Czech and Hungarian economies are slipping ever deeper into recession on the back of weaker external demand, coupled with fiscal austerity at home.
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