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Regional slowdown to continue

Growth in most of Emerging Europe will continue to slow over the next couple of years, and by more than most expect. The slowdown is set to be sharpest in Turkey, where the recent currency crisis will result in a slump in domestic demand, pushing the economy into recession. Growth will weaken in Central Europe, but much more gradually. The one key exception is Russia, whose recovery is likely to resume over the coming quarters and we think growth will surprise on the upside.

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