South Eastern Europe Economic Forecast

Economic Snapshot for South-Eastern Europe

June 8, 2022

Economic growth in South-Eastern Europe set to cool in 2022

Regional growth was revised slightly upwards over the past month, as the outlook in Romania improved on a strong Q1 outturn and despite the war in Ukraine. However, regional growth will be constrained by supply chain issues, and international sanctions placed on Russia weighing on tourism and trade. Moreover, household spending will be dented by elevated inflation.

Inflationary pressures expected to increase in South-Eastern Europe

Regional inflation rose to 39.6% in April from 34.2% in March. Price pressures intensified everywhere in the region as the fallout from the war in Ukraine caused energy and food prices to spiral. Consumer prices are forecast to remain elevated this year. However, inflationary forces are expected to ease in the second half of the year.

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