The crisis in Russia, coming alongside renewed weakness in the euro-zone, adds to the headwinds facing Central and Eastern Europe (CEE). Thankfully, the threat of potentially explosive financial contagion from the crisis in Russia looks limited. But the hit to trade is likely to be more painful. We estimate that the fall in CEE’s exports to Russia could plausibly knock 0.3-1.0%-pts off regional GDP growth in 2015.
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