Central and Eastern European (CEE) countries are preparing to announce significant economic data. Yet the economic outlooks from across the region reflect a somewhat mixed picture among them. Poland and Slovenia are both due to release flash inflation figures for November, whereas Romania continues to give off positive vibes with it reporting a narrowing of budget deficit. Sentiment in Czechia and Hungary darkened heading into the end of 2025. By comparison, other CEE countries made significant progress over those same years.
Poland will release flash inflation data for November. Taking action with this key indicator will help shine a light on the real drivers of price increases and on boosting economic stability. Similarly, Slovenia will release its flash inflation figures for the same month, contributing to the regional understanding of inflationary pressures. These reports are expected to steer monetary policy directions throughout the region.
Economic Developments in Romania
Romania’s Ministry of Finance recently issued a landmark announcement. The improvement apparently continued through October, with the country’s budget deficit reducing to only 5.7% of GDP. This reduction is a reflection of the direct improvement in fiscal management with the government’s continued efforts to dampen its hyperinflationary economy. Analysts see this as a good sign, a signal that even with challenges remaining, Romania is improving fiscally and taking steps towards financial sustainability.
Moreover, Croatia’s economy proved remarkably resilient with its third-quarter GDP beating expectations and landing at a solid 2.3% year-on-year. This rapid growth rate is a sign of overall economic stability that can further support consumer confidence and investment. The region continues to be a scarred landscape of economic challenges. These encouraging signals shed light on the opportunity for rebounding growth in many countries.
Shifts in Economic Sentiment
In Czechia and Hungary, the overall economic mood has soured as 2025 approaches. According to the latest economic outlook, available reports suggest businesses and consumers in both nations are growing more and more pessimistic about expected economic conditions. There might be many reasons for this pessimism, including ongoing inflationary pressures and a dropoff in consumer spending.
Some other CEE countries have shown an upswing in the economic sentiment indicator. Countries such as Slovenia have been seeing some good news. In fact, in October, they announced that growth in retail sales was up 2.2% over the previous year. This increase reflects the growth in consumer spending and consumer confidence, both key ingredients in any economic recovery.
Hungary is expected to release its unemployment rate and producer prices growth later today at 8:30 AM CET. These wouldn’t be nice-to-haves—they would be essential metrics to help understand the dynamics of the labor market and cost pressures throughout the economy. In parallel, Czechia will release a detailed breakdown of its third quarter GDP at 9 AM CET, giving a glimpse into how well the economy performed.
Currency and Yield Movements
This week, the CEE currencies strengthened modestly against the euro. This new trend would indicate that regional currencies are finding their footing even as economic moods swing back and forth. As dramatic as Hungary and Poland’s level of fiscal stability is, they’ve both seen long-term yields fall significantly, too. In Hungary, the 10-year yields have reverted to under 7%, which speaks in favour of investor’s faith in long-term fiscal frameworks.
Polish President Karol Nawrocki recently signed into law a new corporate income tax for banks. The main objective behind this decision is to increase revenues for the government. Beyond the immediate scope of this ruling, it could signal a larger trend seen throughout Poland’s financial climate that could affect foreign investment and banking business practices.
Croatia and Serbia will publish figures for industrial production and retail turnover in the first half of November. This new information will help understand regional economic trends. The next few days are going to be critical as countries all over CEE maneuver through these rapidly shifting economic terrains.