Economy, Finance and Trade

Although Slovenia has been beset by political instability and corruption remains an issue, its economic freedom is one of the best in Eastern Europe. However, the economy is slowing, as inflation is elevated, whilst its highly open nature exposes its…

Increasing authoritarianism and corruption are resulting in mass protests, although fiscal discipline is leading to better state finances. Economic momentum is slowing, owing to high inflation and reduced external demand, but foreign investment…

Improving state finances and effective control of corruption are adding to Latvia’s economic freedom, but relations with neighbours continue to be tense. Economic momentum is moderating, owing to high inflation that is hitting consumption, but the…

In Mozambique, ongoing conflict and corruption exacerbate economic challenges. The economy is hindered by high unemployment and reliance on agriculture. The young and growing population remains impoverished, facing healthcare and educational hurdles,…

Although Moldova is ‘moderately free’ for economic freedom, Russia’s influence operations may spur instability. Economic growth to rebound over the near term, outperforming regional average. The population is shrinking and ageing rapidly, which…

Kosovo has suffered from significant political instability, whilst corruption is pervasive. Nevertheless, European Union (EU) accession is on the cards and the economy is expected to outperform peers in the near term. The consumer market remains…

Albania is advancing with its programme to join the European Union (EU), but the large informal economy and endemic problems still hold it back. Annual real GDP growth is expected to slow down over the near term. Albania offers a large labour force,…

Although Estonia enjoys substantial economic freedom and tackles corruption effectively, state finances are deteriorating but remain sustainable. The economy is experiencing recession and stagflation, whilst its highly open nature creates risks for…

A low corporate tax rate and better finances are leading to enhanced economic freedom in Croatia, although corruption continues to be an issue and politics is moving to the right. Adoption of the euro could boost investment and tourism, but the…

Although economic freedom has worsened and political instability persists, state finances have improved and taxation is low. North Macedonia’s economy has struggled under the weight of elevated inflation, but this is falling and foreign investment…

Although Lithuania enjoys economic freedom and solid state finances, relations with neighbours have worsened and add to uncertainty. The economy has been hindered by the highest inflation rate in the eurozone and output growth could enter negative…

Whilst Georgia’s government finances have improved and a low tax burden benefits businesses, governance is becoming more authoritarian and moving away from democratic ideals. Economic development was extremely robust in 2022, thanks to tourism,…

Candidacy for European Union (EU) membership could improve Bosnia and Herzegovina’s (BiH) economic freedom, although corruption is pervasive. The country has a relatively diversified economic base and whilst inflation is moderating, the economy is…

Although corruption is a problem, the Czech Republic has strong adherence to economic freedom and solid government finances. Economic growth is set to slow amidst persistent inflation, but the foreign investment landscape is vibrant. Whilst…

A low tax burden adds to Hungary’s economic freedom, but corruption remains an issue and state finances are under pressure. Economic performance has outpaced peers and unemployment is low, but inflation remains very high and will adversely impact…

With its very low tax burden and strong state finances, Bulgaria enjoys economic freedom, although political instability has been common. High inflation is adversely affecting the economy, but joblessness remains low. Although skills shortages are…

Despite the business landscape enjoying relative economic freedom, political instability has been a common feature of Slovakia. Although joblessness is relatively low, wages are increasing, also adding to very high inflation, whilst the war in…

Corruption continues to hamper economic freedom and fiscal health could be improved, but Romania has entered a period of political stability. Economic development is set to slow, as high inflation erodes purchasing power and has led to greater…

An unbiased judiciary weakens the rule of law and corruption is more prevalent, but the business environment continues to thrive. Although the economy is expected to slow markedly in the short term owing to high inflation, medium-term prospects are…