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Submitted by JP on Tue, 01/16/2024 - 23:49
UniCredit: Central and Eastern Europe is the leading growth region in Europe

Economists at UniCredit expect that the economies of Central and Eastern Europe will achieve growth of around 3 percent in 2024 and 2025, with similar growth rates in the Western Balkans. “The growth rate of the CEE region is close to potential this year, while in Western Europe, at 0.5%, it is below potential”, commented Dan Bucsa, UniCredit’s Chief CEE Economist during The Central and Eastern European Forum, held in Vienna. 

Panorama of Warsaw, Poland. Photo by Agnieszka/Pixabay

In the most recent UniCredit Research's CEE Quarterly titled "A year of crucial choices," it was highlighted at the CEE Forum that the growth recovery in Central and Eastern Europe (CEE) is anticipated to be driven primarily by private consumption. This boost is expected to be facilitated by accelerated real wage growth, increased borrowing due to lower interest rates, and a favorable wealth effect resulting from rising house prices. Contributions to growth from capital expenditures (Capex) and exports are not expected until at least the second half of 2024.