Weak growth masks diverging prospects

Growth in Emerging Europe is set to remain sluggish over the next couple of years, due in large part to continued weakness in the region’s largest economy, Russia, and a looming slowdown in the region’s second largest economy, Turkey. However, while Emerging Europe’s two largest economies are likely to struggle, we expect growth elsewhere – notably in Poland – to accelerate. The net result is that while aggregate growth for the region as a whole will remain weak, several economies are likely to see an improvement in performance.