Central and Eastern European cities will maintain their status as the fastest-growing

Central and Eastern European cities will maintain their status as the fastest-growing.

According to OXFORD ECONOMICS Central and Eastern European cities will maintain their status as the fastest-growing led by Prague and Warsaw.

While Europe’s largest cities face short-term challenges, signs indicate an upturn in the medium-term horizon. Forecasts suggest that GDP growth will accelerate starting from 2025, stabilizing at an average rate of 2.1% until 2028. Though this projection remains below pre-pandemic levels, it signals a positive trajectory for urban economies.

Prague and Warsaw will lead the ongoing rapid growth.

 

  1. Central & Eastern Europe’s Growth Frontiers: Prague and Warsaw are anticipated to spearhead growth in this region. Increased inward investment is anticipated to bolster productivity, serving as a primary driver of GDP expansion amidst persistent demographic pressures on the labor market.

  2. Resilience in Nordic Capitals: Despite recent setbacks, Copenhagen, Stockholm, and Oslo are poised for moderate growth over the next five years. These cities boast robust economic fundamentals supported by favorable demographics and employment prospects, particularly aiding Stockholm’s recovery.

  3. Western Europe’s Steady Performers: Amsterdam and Lyon are projected to emerge as stalwarts among their Western European counterparts. Their resilience reflects strong economic underpinnings and promising growth trajectories.

  4. Paris vs. London: Paris is forecasted to outpace London in economic performance, partly attributable to France’s delayed recovery post-2022. Additionally, the UK’s broader economic challenges stemming from Brexit and austerity policies contribute to London’s comparative struggle.

  5. Struggles in Financial Hubs: Zurich and Frankfurt, prominent financial centers in Europe, face subdued growth due to sectoral challenges, echoing London’s plight. Meanwhile, Lisbon and Rome, Southern European cities, grapple with sluggish growth prospects, primarily hindered by unfavorable demographics.

In summary, while short-term pressures persist across Europe’s major cities, the medium-term outlook shows promise. Forging ahead, strategic investments and demographic shifts are poised to shape urban landscapes, with Warsaw among the leading lights driving regional growth.

varsoinvest.com

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