According to economic researchers, double-digit inflation rates throughout Central and Eastern Europe are reducing the region’s growth prospects. “If oil and gas have to be rationed in winter, Eastern Europe could slide into recession,” wrote the renowned Vienna Institute for International Economic Comparisons (WIIW) in a forecast on Wednesday.
In the EU countries in the region, prices would rise by an average of 11 percent in 2022, it said. It is worrying that inflation is also increasing outside of food and energy. According to WIIW boss Mario Holzner, consumer confidence in economic development has fallen even more than that of companies. The reason is inflation: “It eats into purchasing power,” said the economist.
The WIIW assumes that the eleven eastern EU economies can grow by an average of 3.3 percent this year without energy rationing. Last year it was 5.7 percent. The growth rate of the six Western Balkan countries was estimated at 2.9 percent, after 7.6 percent in the previous year. Russia’s economy will shrink by 7 percent, it said. The trade sanctions over the attack on Ukraine would only gradually have a stronger impact. According to WIIW, a slump of 38 percent is expected in Ukraine. (dpa)