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Russia’s recovery stalls, region headed for a downturn in Q4

Russia’s economy lost steam at the end of Q3 amid a contraction in consumer spending and the next stage of the recovery will be harder given the hit to incomes, weak investment and tight fiscal policy. Meanwhile, the Czech authorities tightened virus restrictions further this week and we now expect the economy to suffer a fresh downturn in Q4. Finally, growing cracks in Ukraine’s anti-corruption drive pose a threat to the outlook.

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