Growth in Emerging Europe is set to strengthen over the next few quarters, helped in part by the fact that the drag from Russia will ease as it exits recession. However, while the acute stage of Russia’s crisis has passed, the recovery over 2016-17 will be weak by past standards. Instead, we expect the economies of Central and South Eastern Europe to remain the region’s best performers. Admittedly, growth in these countries will slow to more normal rates over the course of the next year as recent tailwinds – notably from lower oil prices – fade. But even so, we expect these economies to grow by 3% or so, which would be good by the standards of the rest of Europe. One common theme across the region is that inflation pressures will remain low, allowing central banks either to maintain extremely loose policies or, in some cases, cut interest rates further.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services