The threat of Western sanctions on Russia is clouding the near-term outlook, but the recent sharp increase in oil prices suggests that fiscal policy may become a bit more supportive this year and that there's scope for a rally in Russian asset prices. Meanwhile, the global shortage of semiconductors is threatening the recovery in industry in Central Europe. Chip shortages have already disrupted production across parts of Europe and, if supply constraints worsen, this may add to concerns about high inflation across the region.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services