Central and Eastern European economies, such as Russia, have largely been unaffected by the current credit crunch affecting developed economies, according to Dr Tibor Schindler, chief strategist for emerging markets for Raiffeisen Capital Management.
Schindler said that although there have been isolated companies in the region that have been affected, the growth potential is still firmly in place. In the case of Russia Raiffeisen is estimating 7% real GDP growth for 2008, compared with 1% for the US and 1.9% for the 13 major EU economies. Russian inflation it believes will be in the region of 14.5% compared with the US level of 3.6% and the EU’s 3.3%. The drivers for Russia will continue to be the demand for its energy resources from the likes of India, China and developed markets. Gazprom is now the largest stock in the MSCI Emerging...
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