Central & Eastern Europe Economic Forecast

Economic Snapshot for Central & Eastern Europe

January 11, 2022

GDP forecast to expand at softer rate than 2021

This year, the regional economy is poised to grow at a solid rate, albeit softer than in 2021, as the gradual easing of restrictions, coupled with tighter labor markets, bolsters household spending. Moreover, the inflow of EU funds is expected to spur investment growth. However, elevated daily Covid-19 cases continue to cloud the outlook.

Inflation to continue its upward trend

Regional inflation rose to 7.1% in November from 6.4% in October. All regional economies except for Romania recorded higher inflation, largely amid ongoing supply chain disruptions and rising energy costs. Second-round effects of the supply-side shocks, coupled with rising labor costs, will see inflation averaging higher in 2022.


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Central & Eastern Europe Economic News

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