UniCredit economists expect the economies of Central and Eastern Europe to grow by around three percent in 2024 and 2025, with similar growth rates expected in the Western Balkans. This is according to a study by the UniCredit Group, which is available to ČTK.
West below its potential
“Growth rates in the CEE region are close to their potential this year, while Western Europe is below its potential with growth of 0.5 percent,” said Dan Bucsa, UniCredit’s chief economist for Central and Eastern Europe.
He said the recovery in CEE growth is likely to be led by household consumption, helped by faster real wage growth, rising borrowing in a lower interest rate environment and the positive impact of house prices on wealth. He expects capital spending and exports to contribute to growth from the second half of this year at the earliest.
Below 3 per cent
According to UniCredit economists, budget deficits will be below the 3 percent of GDP threshold between 2024 and 2025 in the Czech Republic, Bosnia and Herzegovina, Bulgaria, Croatia, and Serbia, while fiscal impulses will be negative in most CEE countries. They believe that fiscal adjustment will be slowed by a busy electoral agenda.
“We expect pro-European parties to win a majority of seats in the European Parliament as Poland leads a growing pro-EU and pro-CEE group that will push for deeper economic and political integration in Europe,” the company’s economists say.
Source Czech Press Office
