In Poland, a bill currently in discussion at the Ministry of Finance introduces new taxes applicable to two economic sectors—the banking and digital sectors. This controversial move is intended to address the country’s stratospheric budget deficit. The proposed measures are shaped by the context of Poland’s urgent need for fiscal consolidation. Poland’s economy was on display of superstar, unprecedented strength with a 3.4% yoy growth rate in Q2 2025. Second, it posted a strong quarter-on-quarter growth of 0.8%.
Read on for what’s at stake as countries across the region look to release important economic data. Slovenia will unveil its flash GDP data for the second quarter at 10:30 AM CET, while final inflation figures for July are expected from an unspecified country at 10 AM CET. Croatia will do the same, releasing its final inflation figures for July at 11 AM CET.
Poland’s Economic Performance
Indeed, Poland’s economy has been remarkably resilient during the pandemic, registering a surprisingly strong 3.4% year-on-year growth rate in the second quarter of 2025. This trend figure depicts a very sharp and steep positive spike. It’s particularly striking since the economy grew by more than 3% during the first half of the year.
In 2013, Poland recorded a trade surplus of EUR 59 million. It further reached a healthy current account surplus of EUR 651 million, indicating a healthy balance in its international transactions.
Though these are all positive indicators, the Polish government is in a difficult position as it is experiencing a large budget deficit. The onus is now on the Ministry of Finance to implement consolidation measures to mitigate such financial stress. New taxes on the banking and digital sectors are included. This new initiative is one piece of a more comprehensive plan to increase revenues and jumpstart the economy.
Regional Economic Developments
As Poland prepares to deal with their own fiscal challenges, many other Central and Eastern European countries are coming out with major economic news. Given that Romania flashed 0.3% year-on-year from GDP in Q2, the bottoming out period should bring some strong rebounds. Meanwhile, net wages had a robust annual gain at 9.0%, a record high. On the other hand, Romania’s industrial sector is struggling, decreasing by 0.8% y-o-y in June.
In Slovakia, economic growth decelerated to 0.4% y-o-y in the second quarter, compared to 0.9% in the last quarter. This trend is worrisome as it could lead to stagnation in Slovakia’s economic growth. The Czech Republic posted a slight economic growth of 0.2% q-o-q and 2.4% y-o-y in the same period.
Inflation Trends and Future Outlook
Inflation has become a major concern throughout the entire southeast region. Countries including Croatia and another, as yet undisclosed, country are preparing to announce their last inflation data for July. Such figures will help gauge the effectiveness of monetary policies in place and provide insights into consumer price trends.
Hungary’s GDP increasing by 0.4% compared to the previous quarter. It was only 0.1% higher than this time last year, indicating a worrying potential for an economic standstill. Romania’s economy bounced back surprisingly fast, recording a quarterly growth of 1.2% at that time. All this growth happened while the country struggled with the very real decline of the industrial sector.
As these nations release their economic data, analysts will closely monitor trends and impacts on future fiscal policies and economic strategies throughout Central and Eastern Europe.