Vienna: Despite global trade tensions, Eastern Europe appears positioned to withstand the economic headwinds, according to the latest spring forecast from the Vienna Institute for International Economic Studies (wiiw).
According to Emirates News Agency, the report covers 23 countries across Central, East, and Southeast Europe, indicating that most economies in the region, including EU member states, will maintain robust growth throughout 2025, even as the euro area struggles.
Richard Grieveson, deputy director of wiiw and lead author of the spring forecast, notes that direct trade flows between these countries and the US are low. He adds that the collateral damage from their close ties with the heavily export-dependent German industry is likely to remain manageable.
Grieveson further explains that as in previous cases where the region has been hit by negative external shocks, countries with larger domestic markets, such as Poland, will be better able to absorb the negative impact and are likely to prove resilient once again.
For 2025, wiiw analysts forecast an average growth of 2.5 percent for the EU members in the region, representing a modest downward revision of 0.3 percentage points compared to their winter forecast. Looking ahead to 2026, growth is expected to tick up slightly to 2.8 percent.