Along with the perception of deterioration in fundamentals and growth prospects in many economies, scarcer central bank liquidity has induced a correction in asset values. This correction seems to have gathered pace since the turn of the year—with a clear risk of overshooting on the downside.
Ukraine’s recession has bottomed out and a slow recovery is underway. The IMF financing disbursements have been delayed by government inaction, though the next review should move forward this month. Ukraine requires structural reforms to achieve higher growth, but corruption remains the challenge.