Rising private consumption drives economic growth in New EU Member States
Fast economic growth is continuing in most New EU Member States, driven by domestic demand rather than external trade. Household consumption is expected to rise, supported by increasing employment and wages. Gross fixed capital investment is also projected to remain strong. While the EU-15 may experience a slight growth deceleration, NMS exports and GDP are expected to remain robust. However, Bulgaria and Romania may face challenges with high current account deficits and reliance on foreign debt. Overall, NMS are expected to continue gaining market shares despite currency appreciation, with low inflation and controlled interest rates contributing to stable economic fundamentals.