Fitch affirms Hungary’s 'BBB' rating, slashes 2025 growth forecast to 0.7%

Fitch Ratings has reaffirmed Hungary’s sovereign debt rating at 'BBB' with a stable outlook, the lowest tier of investment grade, but significantly cut its 2025 GDP growth projection to just 0.7%, down from the 2.5% it anticipated in December.

Czech unemployment eases to 4.2% in May

Czech unemployment level eased slightly by 0.1 percentage point in comparison to April to 4.2% in May (chart), as employers seek workforce for seasonal jobs in tourism and restaurants.

Czech industry maintains 2% y/y growth in April

Czech industrial production increased in real terms by 2% year on year and by 0.9% month on month in April (chart), maintaining a modest three-month growth trajectory to which it returned in February. In March industry grew by 1.4% y/y.

Germans overtake Americas and most hated by Russians – Levada

Germans have overtaken Americas to become the most hated by Russians, according to a poll by independent pollster, the Levada Centre.

Romania’s GDP continues five-quarter quasi-stagnation in 1Q25

Robust growth in construction and slight advances in IT&C and real estate were offset by shrinking industrial activity.

Hungarian retail sales rebound in April, driven by non-food categories

Hungary’s retail sales data positively surprised in April with a calendar-adjusted increase of 5% y/y, the strongest growth in over a year and above consensus. Unadjusted data showed a 6.8% (chart) increase.

Russia’s Central Bank cuts rate to 20% as inflation and economy cool

The board of the Central Bank of Russia (CBR) resolved to cut the key interest policy rate from 21% by 100 basis points to 20% at the policy meeting of June 6, the CBR said in a press release.

Hungarian industry shows signs of life in April, but recovery still fragile

Poland’s fertility rate sinks to just below 1.1 in 2024, a new historic low

Poland’s fertility rate fell to a historic low of 1.099 in 2024, Poland’s statistical office GUS said in a report, which deepened concerns about the country’s shrinking and ageing population.

Kazakhstan’s service sector activity expands at fastest rate in nearly three years in May, PMI data shows

At the same time, business sentiment hits six-month low, job shedding continues.

Czech inflation accelerates to 2.8% y/y in May, according to flash estimate

Growth of consumer price indices (inflation) accelerated to 2.8% year on year, according to the flash estimate released by the Czech Statistical Office.

Russian services sector posts 52.2 in May, strongest growth since January, but job cuts and low confidence persist

Russia’s services sector PMI expanded at its fastest rate since the beginning of the year in May says S&P Global. However, the rebound was accompanied by falling employment levels and falling optimism.

Analysts forecast meagre growth for Hungary after disappointing Q1 GDP data

Hungary’s economy has struggled to regain momentum since mid-2022, alternating between marginal gains and contractions.

Turkey's official inflation falls to 35% y/y in May

Independent economists calculate 74%.

Record number of Russians want the war to end

A record number of Russian citizens now want the war to end, according to a new poll by the independent pollster, the Levada Center, the Moscow Times reported on June 3.

Ukraine’s banks continue strong performance in 2025

Ukraine’s banks continue to show resilience in war-time conditions, posting healthy profits for 2024 and the first four months of 2025 and continuing to reduce their holdings of non-performing loans (NPLs).

Polish GDP records solid 3.7% y/y growth in Q1

Poland's GDP grew by 3.7% year on year in the first quarter of 2025, easing by 0.2pp against the preceding quarter, seasonally adjusted preliminary data released by the statistical office GUS showed on June 2.

Polish PMI suffers biggest decline in nearly three years in May

Poland's Purchasing Managers' Index dropped sharply to 47.1 in May from 50.2 in April, marking the steepest monthly decline in nearly three years.

PMI shows Turkey’s manufacturing declined for 14th month in a row in May

“Softening demand environment central to latest moderation of business conditions”, says index compiler S&P Global.

Russian overdue mortgages double in 3M25 – CBR

The volume of overdue debt on mortgage loans increased by 9.6% in a month, the amount of bad mortgage has almost doubled (+96%) over the first three months of this year, the Central Bank of Russia reports.