17:04 3 March 2026
CEE splits success: Poland, Czech Republic gaining, Romania and Hungary lagging
Central and Eastern Europe has split in two. Poland, the Czech Republic, and the Baltic states are accelerating economically, while Romania and Hungary remain sluggish. In Poland and several neighboring countries, inflation has largely been contained. Romania, however, still faces near double-digit inflation, with core inflation at 8.4 percent, while its economy has fallen into technical recession. Years of twin deficits forced abrupt fiscal tightening, weakening domestic demand and retail sales.
By contrast, the Czech economy is rebounding, driven by rising consumption and real wages. Hungary shows modest improvement but continues to lag structurally. After deep recessions in 2023, the Baltic states are recovering as external conditions improve. Overall, the region is emerging from the cost-of-living crisis, though Romania illustrates the risks of ignoring macroeconomic fundamentals.
(pb.pl)
