Economy in Eastern Europe Grows Despite Global Slowdown

In the Central, Eastern and Southeastern European countries (CESEE) the economy is cooling down, but much less than expected in spring: the forecasts for 2019 have been revised upwards for the majority of the countries. Particularly in the EU-CEE region, growth has decoupled quite clearly from the downturn in the euro area. In several countries there are even increasing signs of overheating, although this is only a cause for concern in Romania. The Western Balkan countries are enjoying rising FDI inflows, while several CIS countries are benefitting from expansive fiscal policy. In Russia, on the other hand, the restrictive fiscal policy brought the economy to the brink of recession. Although the economic crisis in Turkey proved to be deeper than expected, it should be overcome by 2020 at the latest.