South Eastern Europe Economic Forecast

Economic Snapshot for South-Eastern Europe

January 11, 2022

Economic growth in South-Eastern Europe set to cool this year

Regional growth is set to cool this year amid a tougher base of comparison. Even so, healthier demand and output expectations due to normalizing economic conditions should see underlying economic momentum firm. However, weakened fiscal metrics and debt burdens in some countries pose downside risks, while lingering Covid-19 uncertainty further weighs on prospects.

Inflationary pressures expected to ease in South-Eastern Europe

Regional inflation rose from 12.6% in October to 13.7% in November, amid widespread price increases on the back of higher energy prices and recovering demand. Turning to this year, inflationary pressures are expected to ease somewhat due to the fading impact of supply-side constraints and a favorable base effect, particularly in H2.

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