Economic activity in the eurozone has reached six-year highs, according to recent data, so it's no wonder that the emerging region most exposed to the single currency area, eastern Europe, is also beginning to motor.
The average reading of economic sentiment indicators compiled by the European Commission is close to a nine-year high, notes Capital Economics. That translates to regional growth of around 4% in the first quarter of 2017 quite a jump from 3% in the previous three months.
Poland has been doing especially well, with output likely to have expanded by 4.5% in the first quarter, . Longer term, there should be plenty more growth to come for the region as it continues to converge with western Europe. In Estonia and the Czech Republic GDP per capita is still around $33,000 and $30,000 respectively, compared to $42,000 in the UK.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The good news, according to Chris Colunga of the BlackRock Emerging Europe trust, is that the rebound has yet to be priced in. Emerging Europe is on a p/e of below nine, compared with the emerging market average of 12.5, he says.
-
Shein’s London IPO could go ahead, despite forced labour concernsThe chief executive of the financial conduct authority suggests that alleged human rights breaches aren’t a reason to block Shein’s proposed London IPO
-
Elon Musk's $56bn Tesla pay deal rebuffed again by US judgeIt is the second time Musk's pay deal has been rejected, with judge Kathaleen McCormick upholding her previous January decision
