Central Europe continues to show resilience in face of Covid-19

The European Union has released new growth forecasts for 2022, with Central Europe showing the highest growth rates in the bloc. Despite the ongoing pandemic and its consequent disruptions, most countries in Central Europe are expected to see GDP growth well above the EU average. Poland is forecast to lead the pack, with Hungary and Slovakia not far behind. These positive predictions confirm that the region's economies are more resilient than many had initially feared. Thanks to prudent fiscal policies and a focus on export-led growth, Central Europe is well positioned to weather the current storm and emerge stronger than ever.

Continued Growth for Central and Eastern Europe.

The European Commission’s latest economic forecast, published on February 10, projects that the EU economy will grow by four per cent in 2022. This is well above the bloc average of 2.8%.  Growth in the euro area is also expected at four per cent in 2022, moderating to 2.7% in 2023.  The EU as a whole reached its pre-pandemic level of GDP in the third quarter of 2021 and this has been attributed to an increase in consumer spending thanks to lower unemployment rates across the continent, higher wages and more generous social benefits than other global regions offer. A key factor contributing to these positive forecasts for Central Europe.

CE leading EU recovery

The European Union has released a report predicting that the economies of Central Europe will grow significantly faster than the bloc's average in 2022. Growth is expected to be particularly strong across Poland (5.5 per cent), Hungary (five per cent), Slovakia (also five per cent), Croatia (4.8 per cent), Czechia (4.4 per cent), and Romania (4.2 per cent). This news comes as welcome news for a region that has seen steady growth in recent years despite some challenges. The expansion is expected to create new jobs and bring increased prosperity to the region's citizens.

Strong business growth is also expectedt for Latvia (4.4 per cent), while fellow Baltic states Estonia (3.8 per cent) and Lithuania (3.4 per cent), as well as Bulgaria (3.8 per cent) and Slovenia (3.4 per cent) will see their economies grow at a level below the EU average.