CEE’s household purchasing power to rise in coming years

The unemployment rate in the various Central Europe Economies has reduced to its lowest level since 2008-2009. Moreover, a further drop is expected next year.

The employment rate is rising across the whole region except Romania, where employment growth is below the euro-area average. Therefore, wage rate in the region should grow in 2016 and thereby the purchasing power of the households should increase.

"Despite the active role of some CEE governments, inflation remains almost non-existent. The output gap in the CEE countries is already closing fast (in Poland in Q4 2015, in the Czech Republic in H1 2015, in Romania in Q1 2016, Hungary in 2016)", says Societe Generale in a research note.