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Russia is often painted as a villain in the news cycle these days, but the business environment there—and throughout Central and Eastern Europe—is more complex, and more promising, than it may appear to casual outside observers.

The region experienced strong growth in 2018, thanks to domestic demand fueled by tightening labor markets, high wage growth, and low borrowing costs, among other factors. As we head into 2019, conditions look favorable for that demand to remain high. Moreover, the business environment in Central and Eastern Europe is largely positive—for now. Strong institutions and a proximity to Western European markets, which enables easy integration with the supply chains of major companies in the West, combine to support an optimistic outlook.

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