Regional economic snapshot: Poland pulled ahead, Hungary fell behind
In economic terms, the Central and Eastern European field became markedly fragmented in 2025: the latest GDP data show substantial divergences. Poland delivered one of the strongest growth performances in the entire EU, while Hungary effectively stagnated for a third consecutive year.
Poland and Czechia grow steadily
Among the Visegrád countries, Poland was the strongest performer in 2025. Based on national statistics, annual GDP growth was around 3.6%. The Polish economy was supported by strong domestic demand, rising real wages, and increased absorption of EU funds, while its industrial sector was less exposed to Germany’s economic slowdown than those of other countries in the region.
Czechia also posted relatively stable growth in 2025, at roughly 2.5%. The gradual recovery of the Czech economy was aided by a faster decline in inflation and a rebound in consumption; however, strong industrial linkages with Germany continued to weigh on momentum. As a result, growth was more balanced but still lagged behind the Polish pace.
Hungary, Slovakia and Romania show flatter growth rates
In Hungary, economic performance in 2025 was essentially flat. According to the Hungarian Central Statistical Office’s (KSH) first annual estimate, GDP volume increased by 0.3% when adjusted for calendar effects and seasonality, while unadjusted data show growth of 0.4%. The weak outcome was driven by subdued domestic consumption, postponed investments, and weak industrial output—particularly in the automotive sector—while exports failed to meaningfully offset these negative factors. Compared to the government’s earlier expectations of a rapid “take-off,” this result represents a clear underperformance.
In Slovakia, IMF preliminary data point to GDP growth of around 0.8% in 2025. Economic performance was heavily influenced by the cyclical nature of the automotive industry and by energy-intensive sectors adjusting to previously high energy prices. Although growth remained positive, in regional comparison Slovakia followed a slower trajectory.
Romania achieved moderate economic growth of 1% in 2025. Compared with the rapid expansion of earlier years, this represents a slowdown, explained by fiscal imbalances, a high budget deficit, and lingering inflationary effects. At the same time, services and construction continued to support growth, allowing Romania to outperform Hungary and Slovakia, though it still trailed behind Poland and Czechia.
