Our Emerging Europe Chart Pack has been updated with the latest data and our analysis of recent developments.
Economies in Eastern Europe are struggling heading into 2025, and policymakers have limited scope to provide support. We think that stubborn inflation pressures and currency weakness will mean that interest rates are cut by less than other analysts forecast next year. Meanwhile, fiscal concerns will restrict the ability of governments to loosen their purse strings. With weak external demand likely to remain a headwind, we expect GDP growth in most countries to underperform consensus expectations next year.
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