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External weakness dampening robust consumer-driven growth

By: Astrov, Vasily.
Contributor(s): Bykova, Alexandra | Dobrinsky, Rumen | Gökten, Meryem | Grieveson, Richard | Hanzl-Weiss, Doris | How, Marcus | Hunya, Gabor | Jovanović, Branimir | Korpar, Niko | Kruk, Dzmitry | Leitner, Sebastian | Mara, Isilda | Pindyuk, Olga | Richter, Sandor | Sošić, Marko | Ströhm, Bernd Christoph | Tverdostup, Marina | Zavarská, Zuzana | Żurawski, Adam.
Material type: materialTypeLabelBookSeries: wiiw Forecast Reports: October 2024Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2024Description: 158 S., 31 Tables, 57 Figures and 3 Boxes, 30cm.ISBN: 9783852090801.Subject(s): CESEE Central and Eastern Europe | economic forecast | Western Balkans | CIS | Ukraine | Russia | Turkey | EU | euro area | convergence | business cycle | labour markets | unemployment | Russia-Ukraine war | Russia sanctions | commodity prices | inflation | price controls | trade disruptions | Ukrainian refugees | energy crisis | gas | electricity | monetary policy | fiscal policy | impact on Austria | near-shoring | automotive industry | droughtsCountries covered: Albania | Austria | Belarus | Bosnia and Herzegovina | Bulgaria | Central and East Europe | CESEE | CIS | Croatia | Czechia | Estonia | Euro Area | European Union | Hungary | Kazakhstan | Kosovo | Latvia | Lithuania | Moldova | Montenegro | North Macedonia | Poland | Romania | Russia | Serbia | Slovakia | Slovenia | Southeast Europe | Turkey | Ukraine | US | Western Balkanswiiw Research Areas: Macroeconomic Analysis and Policy | International Trade, Competitiveness and FDIClassification: E20 | E21 | E22 | E24 | E32 | E5 | E62 | F21 | F31 | H60 | I18 | J20 | J30 | O47 | O52 | O57 | P24 | P27 | P33 | P52 Online resources: Click here to access online Summary: Economic growth will strengthen in most countries of CESEE in 2025-2026, as lower inflation and interest rates boost real incomes and consumer spending. Investment should also strengthen as interest rates fall, new foreign investment arrives, and EU funds continue to be drawn down. However, the deepening crisis in German industry will continue to weigh on the export-oriented industry of CESEE. The region faces significant downside risks to growth, including a potential victory for Donald Trump in the next US election, and higher energy prices due to tensions in the Middle East.
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Paper WIIW Library 7.715/October 2024 (Browse shelf(Opens below)) October 2024 Available 1000010007026

Economic growth will strengthen in most countries of CESEE in 2025-2026, as lower inflation and interest rates boost real incomes and consumer spending. Investment should also strengthen as interest rates fall, new foreign investment arrives, and EU funds continue to be drawn down. However, the deepening crisis in German industry will continue to weigh on the export-oriented industry of CESEE. The region faces significant downside risks to growth, including a potential victory for Donald Trump in the next US election, and higher energy prices due to tensions in the Middle East.

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The Vienna Instiute for International Economic Studies (wiiw)