Fitch: Geopolitical Risks and Debt Burden Constrain Growth in Eastern Europe

11:25 - 13.10.2026


October 13, Fineko/abc.az. International credit rating agency Fitch Ratings reported that while Eastern European economies have shown resilience against heightened geopolitical tensions, limited monetary and fiscal policy space continues to constrain growth momentum.

Fitch projects a moderate economic recovery across Central and Eastern Europe (CEE) by 2027, warning that persistent inflationary pressures and elevated public debt stocks restrict monetary easing, while domestic political uncertainties impede fiscal consolidation efforts.

Geopolitical tensions remain high due to the war in Ukraine, uncertainties surrounding transatlantic security, and rising hybrid risks. On a net basis, sovereign credit rating outlooks in the region show signs of recovery: Fitch maintains negative outlooks for three countries and positive outlooks for three others. The negative outlooks for Poland and Romania reflect widening budget deficits and deteriorating debt dynamics.