Croatia leads CEE in renewables
|On the radar
-
Industrial production in Slovenia grew 1.9% y/y in December.
-
In Croatia, tourism arrivals were higher by 5.4% y/y in December.
-
Inflation rate in Hungary landed at 5.5% y/y in January, a major upside surprise.
-
There are no other releases scheduled in CEE.
Economic developments
Share of energy from renewable sources ranges from 17% in Hungary, Poland, and Slovakia to as much as 28% in Croatia. In the region, renewable sources of energy are used the most in electricity generation, with Croatia leading again with almost 60% of renewables used as a source of energy in electricity. Romania and Slovenia also stand out with a share above 40%. On the other hand, only Czechia and Hungary have a share of renewables in electricity below 20%. The share of such power sources in heating and cooling is also non-negligible, as Croatia, Serbia, and Slovenia have it above 30%. However, CEE lags behind in the use of renewables in transport. In Croatia and Serbia, it stands only at 1%, whereas Slovenia is leading with a share of renewables in transport at 10%. However, this is way lower than the EU-level target of 29% for the use of energy from renewable sources in transport by 2030, which would require substantial annual average increases. Looking across the EU, Sweden was the EU country with the highest share of renewables in transport and the only country that has already achieved the 2030 target (33.7%).
Market movements
CEE currencies keep strengthening against the euro, with EURCZK at 25.07, EURHUF at 404, and EURPLN moving toward 4.18. Long-term yields have been declining due to global factors, which will remain key reasons for any further changes. Federal Reserve Chair Jerome Powell will appear before Congress on Tuesday and Wednesday, which could affect the markets. Tariffs remain one of the key issues being debated, with the recent announcement of 25% tariffs on steel and aluminum imports. Locally, Romania's outgoing President Iohannis resigned in an effort to defuse political tension after a high court decision to annul a shock election result last year extended his tenure in office.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.