Russia will fall into a deep recession following the ruble’s collapse and the sharp decline in the price of oil, and will drag down with it many other countries in the region this year, new forecasts from the European Bank for Reconstruction and Development (EBRD) show.
Countries in the region where the European Bank for Reconstruction and Development (EBRD) operates will see their annual growth rate slowing to 1.3% this year from last year’s 2.3%, the bank predicts in its annual transition report.
Emerging Europe equities could be a good investment for the last quarter of 2014 for those who are ready to brave the huge risks involved. At least that’s the opinion of analysts and asset managers who are looking at the area.
Stocks in emerging markets, and especially emerging Europe equities, are in a good position to close the performance gap with those in developed markets, according to the third quarter outlook published by Erste Bank.
But three analysts published warnings about the asset class on Monday. While not calling for an abrupt end to the rises in emerging markets stocks and bonds witnessed over the past few months, the warnings serve as a reminder that volatility can come back at any time.
The reform process has been stalling in Central, Eastern and South-Eastern Europe and in the former Soviet countries even since before the crisis, and it has even reversed in some countries, the European Bank for Reconstruction and Development’s Transition Report 2013 shows.