The crisis in Ukraine has unsettled the markets, but the economic fallout should be contained to the two countries directly involved – Ukraine and Russia. Ukraine is by far the more fragile of the two and is in urgent need of financial support to avoid a full-blown economic crisis, although for Russia the crisis comes at a time when the economy was already struggling. Elsewhere, it looks like growth in Turkey will slow sharply following aggressive hikes in interest rates at the start of this year. By contrast, the outlook for the highly-open economies of Central Europe is brightening on the back of the recovery in the euro-zone. Poland is set to be the region’s star performer over the coming years.
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