Central Europe / Opinion
COMMENT: Czechia economy powering ahead, Hungary’s economy stalls
Early third-quarter GDP figures from Central Europe point to a growing divergence between the region’s two largest economies outside Poland, with Czechia accelerating its recovery while Hungary continues to struggle.
COMMENT: Europe’s “fake it till you make it” war approach cannot hold off Russia’s trillion dollar war machine
In their speeches on the war in Ukraine, European leaders appear like a video clip looped on repeat. Standing before the cameras they declare new packages of support for Kyiv and threaten new measures to pressure Russia as if it was still 2022.
COMMENT: Hungary’s investment slump shows signs of bottoming, but EU tensions still cast a long shadow
Hungary’s economy has fallen behind its Central European peers in recent years, and the root of this underperformance lies in a sharp and protracted collapse in investment. But a possible change of government next year could change things.
IMF: Global economic outlook shows modest change amid policy shifts and complex forces
Dialing down uncertainty, reducing vulnerabilities, and investing in innovation can help deliver durable economic gains.
COMMENT: ANO’s election win to see looser Czech fiscal policy, firmer monetary stance
The victory of the populist, eurosceptic ANO party in Czechia’s parliamentary election on October 6 will likely usher in a looser fiscal stance that supports growth and reinforces the Czech National Bank’s recent hawkish shift.
COMMENT: Trump is preparing a “back door” plan to blame EU for Ukraine’s failure - FT
European officials fear that US President Donald Trump’s dramatic U-turn on Ukraine is a back door plan to shift responsibility for the West’s failure to prevent Ukraine’s defeat in its war with Russia or help it recover afterwards.
COMMENT: Russian drone and jet incursions highlight shortcomings in Nato’s multilayered air defence system
A spate of Russian drone incursions has stress-tested Nato’s air defences. On September 10, nineteen Russian drones violated Poland’s airspace — the alliance’s worst such breach in more than seventy-five years.
COMMENT: Europe’s summer of humiliation
This summer started with optimism around trade deals and progress in Ukraine, but quickly unravelled. Trade uncertainty is back, the war drags on with rising casualties, and Europe is now grappling with a raft of political crises.
COMMENT: What were Russian drones doing in Poland?
With no clear explanation from Moscow, theories have proliferated over how and why more than a dozen Russian drones crossed into Poland on September 10—and what this means for European security.
ING: Czech industry joins the growth pack
Industrial output accelerated in July, beating market expectations. Robust gains were recorded in key segments of manufacturing, suggesting the onset of a broad-based recovery.
ING: Risks to Czech inflation from wages and emission allowances
Inflation eased to 2.5% in August, dragged down by another monthly decline in food prices. We see the soft reading as a low point, with inflation set to gain pace over the coming quarter.