According to 2025 economic forecasts from the European Commission, the outlook for Central and Eastern Europe is bright. Czechia, Slovenia and Romania will all exceed a 2% growth rate. This predicted strong economic performance comes against a backdrop of persistent but declining inflation rates and possible monetary easing throughout the region.
With Czechia’s economy forecast to grow just above 2% in 2025, it mirrors the outlook for growth in Slovenia and Romania. This upward development trend represents an encouraging economic picture as these countries emerge from a pandemic and work to maintain strong economies. For now, Czechia as a whole is still on a prosperous growth path. It abandons any monetary easing in 2026 and adopts a 3.5% terminal rate.
With inflation pressures across the region expected to relax by 2026, conditions may be ripe for a better economic reality. With inflation likely stabilizing over coming months, a monetary easing scenario is expected for a handful of countries. Romania, on the other hand, aims to start easing monetary policy in H1 2026. This decision is symptomatic of a general move away from stricter monetary policy towards a more dovish stance.
In Serbia, the GDP growth forecast for 2026 has been lowered to 2.7%, from an earlier forecast of 4.3%. This positive shift highlights how far we still need to go in ensuring prudent economic stewardship as our nation continues to face persistent crises. Look for Serbian cap on transport prices to disappear by 2026. If successful, this move would provide even more helpful context to the rapidly changing economic landscape. By then, inflation’s prospects in Serbia are expected to start looking clearer.
Poland continues to shine within the union with a robust growth forecast. Its expansionary growth drivers are predicted to top out at around 3.5% growth in 2026. This puts Poland in a strong position compared to its regional peers who are enjoying a slower pace of growth. Hungary’s 2026 prediction has been revised downwards to 2%. That’s a drop from the earlier, higher estimate of 2.3%.
As the region continues to rebound, so too will economic sentiment as the economy reaches equilibrium. This change is welcome as it provides more certainty around tariffs, particularly since August 2025. However, the Recovery and Resilience Facility (RRF) payments are scheduled to end in 2026. This unprecedented change would have far-reaching implications for fiscal policies and growth strategies across the region.