Prosperity index revealed yesterday
|On the radar
-
Final inflation footprint in Croatia arrived at 4.1% y/y in March.
-
Core inflation in Poland landed at 4.6% y/y in March.
-
In Czechia, industrial producer prices decreased by 0.1% m/m and remained at the same level y/y.
Economic developments
Slovakia presented its Index Prosperity on Tuesday that ranks European countries within four categories: Economy, Households, Society, Education and Environment. From our region Slovenia ranked first, Czechia and Poland are on 13th and 16th place respectively and other CEE countries placed at the end. Despite rather low rank, there are three main areas, in which the region excels. These are long-term growth, labor market outcomes and income equality. Long term perspective clearly shows how prosperous the region has been over last 20 years and most recently in the post-pandemic era. Unemployment rate in all CEE countries is below the EU average at 6%. Czechia and Poland have the lowest unemployment rates in the whole European Union. CEE countries also rank high in income equality as measured by Gini coefficient. Interestingly the perception is quite different as very high share of society considers income differences as too large.
Market developments
Today, Croats will cast their votes in parliamentary elections. The ruling conservative Croatian Democratic Union (HDZ) led by incumbent Prime Minister Andrej Plenkovic is challenged by an alliance of centrist and left-wing parties informally led by President Zoran Milanovic and his Social Democratic Party (SDP). The Polish zloty and Hungarian forint weakened against the euro more visibly since the beginning of the week. EURHUF moved toward 395 while EURPLN is at 4.36. On the other hand, the Czech koruna has strengthened. Romanian Board Member of the central bank Popa said on Tuesday that May’s interest rate cut remains uncertain. He added that central bank may need more time to begin monetary easing. In his view, the progress in inflation fight was enough in February, leaving March as the only month with substantial progress. On the bond market, the long-term yields keep moving north this week.
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.