Eastern European Markets Economically, the Region is most strongly linked to developed Europe. In the long term, convergence with developed European markets will fuel growth in the core emerging European markets as the benefits of a lower cost of capital and an increased standard of living feed through. The possibility of lower interest rates and a more stable oil price suggest that 2001 is likely to be a better year for emerging Europe. Nonetheless, it is likely to be a bumpy ride until the situation with the US economy is clearer, and investors develop a greater appetite for risk. The outlook for the Middle Eastern economies remains fairly positive as interest rates decline and Governments continue their slow path towards privatisation and deregulation.
Peace remains elusive.
South Africa seems to have seen the bottom of a tough economic period with lower interest rates now having some effect. However, political risks and social tensions remain high. Regional valuations are relatively attractive. All information contained herein is for informational purposes only and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security or investment advisory services nor shall any such security or investment service be offered or sold to any person in any jurisdiction in which offer, solicitation, recommendation, purchase or sale would be unlawful under the securities laws of such jurisdiction.