Over the past two decades, Eastern and Central European countries have experienced remarkable economic growth. A study by Raiffeisen Research on the 20th anniversary of the EU’s eastern expansion highlights this trend. Countries such as the Czech Republic, Hungary, Slovenia, Slovakia, and Poland have witnessed consistent increases in economic output since 2004. In fact, Poland now contributes around 8.7% to the Union’s GDP, surpassing the Netherlands.
This success can be attributed to several factors, including integration into the EU internal market and high levels of trade openness in the region. The Vienna Institute for International Economic Studies predicts that Poland, Czech Republic, Hungary, and Slovakia will continue to grow in 2024, outperforming the Eurozone. Increased foreign trade and direct investment have also contributed significantly to economic growth in this region.
However, despite these positive trends, challenges remain for the banking sector in some countries. While Czech Republic and Slovakia have seen growth in bank loans compared to Eurozone averages, Hungary has struggled with this issue. Nevertheless, overall prosperity in terms of GDP per capita is on an upward trajectory for CEE countries as a whole.
Looking ahead to the future of this region, there is a desire to strengthen economic ties and promote local champions. Research institutes like Wifo recommend that Austrian politicians support potential expansion of the EU into Western Balkan countries such as Albania, Bosnia and Herzegovina, Montenegro, North Macedonia