Central and Eastern Europe are expected to see a modest acceleration of growth in 2026, with a more favourable outlook in 2027, according to Allianz Research. Poland and the Czech Republic are projected to stay above regional averages thanks to stronger public and private investment, more efficient use of EU funds and a more balanced macro‑economic framework. In contrast, Romania and Hungary are forecast to recover more slowly, hampered by high inflation, persistent macro‑imbalances and a fragile investment climate. Inflation remains the main risk factor for the region; while a gradual easing of price pressures is expected to start in early 2026, Romania’s trajectory is distinct, driven by high food and service costs and fiscal measures that raise expenses. The central bank’s policy is expected to stay cautious, with gradual and condition‑based easing in the face of volatile energy and currency markets. Fiscal pressures remain acute across the region, with most economies recording budget deficits above 3 % of GDP and public debt projected to rise in several states, including Poland, Romania and Slovakia. For firms, restrictive financial conditions, demand uncertainty and high financing costs keep liquidity and investment under pressure, especially in Romania where rising wage costs, high interest rates and extended payment delays weigh heavily on profitability. Analysts warn that while the region will continue to recover, the pace will be uneven, with countries possessing lower structural imbalances and stronger macro‑policy frameworks expected to perform better than Romania, which will remain vulnerable to economic and financial risks.

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