Booming energy and commodity prices are fuelling growth in emerging European countries but they also risk getting burnt by inflation, warns Barings.
An oil price at over $140 a barrel is polarising the world and creating winners and losers, says Martin Majdaniuk, manager of Baring Emerging Europe. He believes the best investment opportunities in emerging Europe lie within the commodities and consumer sectors in Russia and Turkey. Energy producers and exporters are also experiencing phenomenal growth rates with Russia expecting GDP growth of 8.5% and $1.3bn in oil revenue a day. Other commodity beneficiaries include Kazakhstan and the Ukraine, says Majdaniuk. However, Russia and the Ukraine’s economies could be at risk of overheati...
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