Unrest in the east of Ukraine has cast the spotlight back onto the political troubles facing the country’s interim government. What happens from here is highly uncertain, but in the meantime the economy is still extremely fragile. The recently-agreed deal with the IMF has reduced the immediate risk of a balance of payments crisis and default on government debt. However, the conditions of IMF financial support will take a heavy toll on near-term growth, with consumers bearing the brunt of the adjustment.
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