What does 2019 hold in store for CEE?

Weakness in the euro-zone and softer domestic demand will weigh on GDP growth across Central and Eastern Europe (CEE) this year and our forecasts are below consensus. Looser fiscal policy should make Poland an outperformer, while Romania and Hungary will probably be the laggards. Meanwhile, we no longer expect the ECB to raise rates, which has prompted us to reduce our expectations for hikes in CEE.