Capital Economics said in its latest research that the fourth quarter of the year will probably begin with lower economic growth in most of Central Europe. However, Hungary will continue to show a strong performance.
Capital Economics regularly publishes its own synthetic economic indicator, the Economic Sentiment Index (ESI), weighted by individual countries’ gross domestic product. The October ESI for Central Europe was 107.4 in October, slightly lower than the 107.5 measured in September. Note that the index is not a percentage, but an absolute number, with values over 100 indicating positive and those under 100 a negative sentiment.
The fall might be a small one, but it is nevertheless the lowest figure in 11 months. In contrast, Capital Economics says the Hungarian ESI rose to 120.4 from 116.6 in September. The driving factors behind it were construction and industrial output. Capital Economics also expects the Central European region’s average GDP to remain below 4 percent this year.