Description

Depressed investor confidence and the on-going deadlock in Ukraine remain major hindrances to growth for Emerging Europe for the rest of 2015. Encouraging factors such as improved private consumption, increasing industrial production, and exports are expected to expedite the growth momentum for the Czech Republic and Poland. However, the contraction in Russia and detrimental situations in Ukraine will slow down overall regional growth in 2015. Quantitative easing initiatives by the governments of Hungary and Romania are expected to upgrade private consumption; anticipated tax cuts, however, will enlarge fiscal deficits. The regional outlook for the rest of 2015 appears to be bleak.