Our Emerging Europe Chart Pack has been updated with the latest data and our analysis of recent developments.
Economic growth strengthened across Emerging Europe in Q1, and leading indicators suggest that it has picked up further in most countries in Q2. With inflation likely to rise (or stay) above central banks’ targets in the second half of this year, the scope for monetary easing looks relatively narrow. Our interest rate forecasts generally lie towards the hawkish end of expectations in Central and Eastern Europe and in Turkey. While we currently forecast monetary easing in Israel and Russia later this year, the risks are skewed towards no rate cuts being delivered in either country.
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