Economies in a stronger position to weather a new crisis

Economies across Emerging Europe are heading for a sharp contraction in output, but one crumb of comfort is that vulnerabilities are drastically lower than they were in the run-up to the Global Financial Crisis. Large balance sheets strains are unlikely to emerge and the eventual economic recovery should be much faster. That said, there are pockets of vulnerability in some countries that could flare up as the effects of the coronavirus crisis intensify.