The latest batch of activity data suggests that growth in Central Europe may be losing steam. Coming alongside signs that the German economy is also losing momentum, this suggests that the pace of the recovery in Central Europe is likely to slow over the second half of the year. At the same time, the prospect of a rebound in the region’s two largest economies, Russia and Turkey, looks slim. In this Watch, we also take a look at what an Erdogan victory in next month’s Turkish presidential election would mean for the economy.
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