All of Eastern Europe is in danger of slipping into recession

Berlin The economic consequences of the Russian attack on Ukraine are having an increasingly noticeable effect on the EU member states in Central and Eastern Europe – of all countries that are more important for German foreign trade than the USA or China.

Above all, Hungary (minus three percent), the Czech Republic, Slovakia and Romania are likely to slip into recession this year if the war in Ukraine escalates further and an energy embargo is imposed on Russia.

This is the result of the renowned Vienna Institute for International Economic Comparisons (WIIW) in its spring forecast presented on Wednesday. Overall, the region would slide into a recession with -0.9 percent of gross domestic product.

Poland’s economic output will only increase by two percent instead of the expected four percent. These calculations do not even take into account Russia’s current gas supply stop for Poland, Bulgaria and possibly other countries.