Hungarian Parliament building

Central & Eastern Europe Economic Forecast

Central & Eastern Europe Economic Outlook

The CEE economy should strengthen considerably this year from last. Household spending should spearhead growth, buoyed by rising real wages, lower inflation and declining interest rates. The latter will also fuel investment activity, which will likewise be supported by the disbursement of EU funds—especially in H2. Commodity prices and geopolitics are factors to monitor.

Central & Eastern Europe Inflation

Regional inflation fell to 4.3% in January from 5.9% in December due to a strong base effect. Inflation will average lower this year than last on a high base of comparison and the lagged impact of interest rate hikes. A wage-price spiral poses an upside risk. The evolution of commodity prices and regional currencies will be key.

This chart displays Economic Growth (GDP, ann. var. %) for Central & Eastern Europe from 2010 to 2023.

2019 2020 2021 2022 2023
Economic Growth (GDP, ann. var. %) 3.9 -3.4 6.4 4.1 -
Private Consumption (ann. var. %) 3.5 -3.9 6.3 4.6 -
Fixed Investment (ann. var. %) 7.7 -3.2 2.6 3.8 -
Industrial Production (ann. var. %) 1.9 -4.6 11.2 5.1 -3.1
Unemployment (% of active population, aop) 4.6 5.8 5.3 4.8 4.8
Fiscal Balance (% of GDP) -1.0 -6.9 -4.1 -3.8 -
Public Debt (% of GDP) 43.1 53.9 52.8 49.9 -
Inflation (CPI, ann. var. %, aop) 2.7 2.6 4.4 14.3 11.2
CBI Policy Rate (%, eop) 1.35 0.37 1.75 6.48 6.35
Exchange Rate (LBP per USD, eop) 43.15 41.69 45.75 50.22 47.88

Free Sample Report

Interested in Central & Eastern Europe economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest