Austrian Institute: Eastern European economies continue to grow in 2025 and 2026 despite the global challenges

Vienna on May 1/ WAM/ The Vienna Institute for International Economic Studies (WIIW) expected that the economies of Central, East and Southeast Europe will maintain their strong economic growth in the current and next two years despite the growing global challenges and customs protectionist policies.

The “Spring report issued by the Austrian Institute” suggested that Central and Eastern European countries and southeastern Europe record a strong economic growth of 2.5% this year with economic growth acceleration to 2.8% in the year 2026, which reflects the ability of the countries of the region to withstand the new American protectionist policies, global market fluctuations and the escalation of global trade tensions.

Reichrd Grezon, Deputy Director of the Institute, attributed the reasons for the positive economic expectations of Eastern European countries, to the limited direct trade ties with the United States, the growth of the economy of the countries of the region, driven by strong internal dynamics, including the strength of local demand, the high real wages, and the continued flow of European Union funds through the recovery and flexibility fund.

The institute suggested that Austria benefit from the continued growth of the economy of the countries of the Central and eastern Europe, and attributed the main reason to the Austria’s economy closely with its eastern neighbors, and expected Austria’s exports to recover again to the countries of the region, and increase demand, especially on investment goods and machines, in the current year, in light of the fact that the Austrian companies are among the most prominent investors in the countries of this region.

The report, by analyzing the economic growth rates of the countries of the region, and gave Poland first place, expected to grow its gross domestic product by 3.5% in 2025 and 2026, driven by the power of private consumption and local market activity, followed by Croatia, which expected to maintain stable growth rates by 3.1% this year and 3.0% in 2026.

The report expected that the countries of the West Balkan region will witness steady economic growth of 3% this year, and 3.6% in 2026, and that the four “Fishghad” group (Poland, Czech, Slovakia and Hungary) along with Slovenia will achieve average growth of 2.8%, the expected growth rate of the euro zone that will not exceed 0.7% this year, according to results The latest economic study.

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