How resistant to financial turmoil is Eastern Europe?

Financial deepening, a strong macro-economic environment and diversified trade are making the region more resilient.

Normally, emerging markets react very strongly when financial markets are shaky and the risk appetite is falling. The nervousness in the global financial markets has, for instance, caused the Eastern European markets to fall sharply twice this year.

The turmoil in late Februaryearly March originated in the United States and Asia but affected almost all financial markets and Eastern Europe was no exception, although some of the smaller and less liquid markets were almost unaffected. The same thing happened...

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