Outlook more positive for Russia

The 12 months between mid-1998 and mid-1999 were pretty unpleasant for the markets of Eastern Europe. Collapsing oil prices and economic mis-management resulted in Russia defaulting and devaluing in August 1998. This was then followed by a sharp economic slowdown in the EU with disastrous consequences for the economies of Central Europe. Fortunately as day follows night the outlook for the region has changed utterly since last summer. Soaring oil prices, the competitive benefit of the devaluation of the rouble and the end of Yeltsin's tired administration have transformed the outlook fo...