Mobius: How the Russia-Ukraine conflict impacted Europe

Central European economies are beginning to show signs of growth, despite the Russia-Ukraine conflict showing no sign of easing in the near future, writes Franklin Templeton's Mark Mobius.

  Russia The only Eastern European country that is expected to deliver rather uninspiring growth this year is Russia, where GDP is forecasted to grow by 0.3% in 2014, and 1% in 2015, compared with an increase of 1.3% in 2013. Russia remains one of the most undervalued markets globally with a P/E of 5x, with import substitution partially offsetting the sharp slowdown in domestic demand. The recovery of growth is subject to, and very much dependent on, developments in the Russia-Ukraine conflict, and this remains the major concern for investors in Eastern Europe at the moment. The ...