US tariffs disrupt the economic development of Central European countries

The European Bank for Reconstruction and Development has published a forecast showing that abusive US tariffs pose a challenge to the economic development of Central and Eastern European countries.

Given the sharp increase in trade and economic policy uncertainty and weak external demand, the latest economic growth forecast for the region has fallen by 0.2 percentage point compared with the February forecasts.

The forecast shows that the average economic growth rate of Central Europe and the Baltic countries in 2025 and 2026 will be 2.4 % and 2.7 % respectively. Slovakia is the most affected by the US tariff policy, with a 0.8 percentage point decline in GDP. Hungary is second, which would see a 0.4 percentage point reduction in GDP.

CMG