Emerging Europe Economics

Emerging Europe Economic Outlook

26 January, 2018

Cycle to turn in 2018

Most economies in Emerging Europe had a very strong end to 2017, but we expect regional growth to soften in the coming quarters. The economic cycle in Central Europe is now looking mature and growth is likely to weaken gradually. Inflation will rise further and, despite continued loose ECB policy, we think central banks will raise interest rates. Turkey and Romania, which saw turbo-charged growth last year, are set to suffer sharper slowdowns. A handful of economies will buck the trend, notably Russia

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