Emerging markets are a beacon for global growth – except when they’re not. That’s the split message of the latest report from the EBRD, the key forecaster for central and eastern Europe and central Asia.

The headlines figures are slight downgrades: the region’s growth will be 3.5 per cent in 2010 and 3.9 in 2011, not 3.7 per cent and 4.0 per cent as the bank estimated in May. According to the bank:

Given the weakening outlook for the Eurozone – as fiscal austerity programmes are implemented and financial markets are likely to remain volatile – the external environment may be less benign than previously projected…

So much for the overview. What’s interesting is the break-down. Continue reading »