Solid regional growth in Q4:15 spurs optimism for 2016 prospects

Strong finish for the region in Q4-2015 despite headwinds in the EM space. Sustained low world energy prices provide a positive, albeit probably smaller than last year, boost on growth momentum in 2016. Economic sentiment in the region in the first two months of 2016 still at its highest or close to the highest level since 2008. Despite some improvement in global investor sentiment, February proved to be yet another month of increased market volatility and risk aversion. Regional currencies remained supported by expectations for further ECB stimulus, healthy growth prospects. Local-currency government bonds retained a firm tone on subdued inflation pressures, ECB easing.