Central & Eastern Europe Economic Forecast

Economic Snapshot for Central & Eastern Europe

January 12, 2021

GDP forecast to expand robustly in 2021

This year, regional GDP is set to expand robustly as the effects of the pandemic fade and restrictions are gradually relaxed. Domestic demand should be bolstered by inflows of EU funding and supportive fiscal policies, while stronger foreign demand is seen boosting exports. Downside risks persist, however, due to lingering pandemic-related uncertainty.

Inflation to continue its upward trend

Regional inflation continued its upward trend in May, rising to 3.8% (April: 3.5%), largely reflecting higher price pressures in regional heavyweights Hungary and Poland. Looking ahead, although price pressures should ease from their current levels, inflation is set to average higher than last year on stronger activity and higher oil prices relative to 2020.


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Central & Eastern Europe Economic News

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