Growing utility and social costs in Russia have caused an alarming increase in the number of poor Russians driven into debt and arrears have sextupled in the last three years to $11bn.
Russian government tightens the use of National Welfare fund use for financing infrastructure projects. The Russian government will only allow reserve funds held in the National Welfare Fund (NWF) when the liquid part of the fund is bigger than 7%
Moldova's industrial production index increased by 3.5% y/y on average in 2017, accelerating to 5.7% in Q4 when the food industry and textiles production gained momentum.
Romania’s banking system has the potential to continue the expansion seen in 2015-2017, but the rising interest rate is a serious challenge.
Russia’s industrial output performed better than expected in January, rising 2.9% y/y after contracting in both November and December, Rosstat said on February 16.
Despite stellar growth, investors are nervous about the lack of regulatory predictability in particular on fiscal policy, which will keep FDI volumes from rising in future.
Poland's consumer price index expanded 1.9% y/y in January, shedding 0.2pp compared to the annual growth rate seen in the preceding month.
Growth slowed steadily from 2.5% in Q1 to a disappointing 1.8% in Q4, showing that Ukraine is operating well below its potential.
The average monthly salary in Ukraine will exceed UAH10,000, or $357, this year, Prime Minister Groysman predicted
Boosted by rampant consumption fuelled by a loose policy mix, the growth rate is unsustainable and is expected to slow significantly in 2018.
Polish economic growth loses some pace compared to the seasonally adjusted y/y expansion of 5.2% in the third quarter.
There were $5.8bn of issues in the bond markets of Central and Eastern Europe in January, well ahead of the $390mn of issues a year ago.
Lithuanian producer prices grew 3.1% y/y in January, after expanding 3.5% y/y the previous month.
Inflation in Belarus stood at 0.8% month-on-month in January (4.5% year-on-year) and the central bank will cut interest rates again in February to 10.5%
Industrial production volume increased by 8.2% in 2017, helped by the economic recovery in the EU area, but the availability and cost of the labour force are becoming constraints for future expansion.
Inflation has now grown in y/y terms for 17 months straight, having not fallen below the 2% mark since December 2016.
Trade turnover between Russia and China was up by 27% in January, but faster growth is needed to reach the $200bn target by 2020.
Albania's population contracted 0.2% in 2017 after briefly rising in 2016, but is forecast to fall dramatically by the end of this century driven to a large extent by mass migration.
Average net wages in Romania increased by 9.5% y/y in Q4, the weakest performance in two and a half years, and slower rates are expected this year after the government made broad income taxation and social security contribution reforms.
Slovenia’s industrial production increased 8% y/y in 2017, mainly driven by the manufacturing sector.