It’s been a good month for Central Europe, although the news elsewhere in the region has been less encouraging. A raft of preliminary Q2 GDP data showed that, although growth remains weak in Central Europe, it is accelerating. What’s more, forward-looking indicators both within the region and in Germany (by far the region’s largest trading partner) have improved further in the current quarter. By contrast, the Russian economy probably slipped into recession in Q2, while the Turkish currency and equity markets have been hit hard amid the recent financial market turmoil.
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