Central European Economic Outlook

Mon, Sep 6 2010, 14:12 GMT
by KBC Market Research Desk


  • Czech Republic
    According to the first estimate the Czech economy grew by 2.1% in the second quarter. The industry as well as exports recorded strong growth, while domestic demand remained subdued. Inflation is closer to the target of the CNB but the central bank may not rush to raise its rates.
  • Hungary
    Macro data in August confirmed the consensus view about a gradual recovery amid improving external balance and low inflation. The next key event could be the 2011 budget proposal due early October, which may show the new directions of fiscal policy.
  • Poland
    Polish consumption and domestic investments surprised on the upside in the second quarter. It is pretty comfortable to see that domestic demand continues to play a powerful role in current growth. On the other hand it only magnifies the risks associated with public finances.
  • Slovakia
    The Slovak economy grew by 4.7% in H1 2010. The foreign demand is the main