Private consumption pushed growth in 2024

Today, we evaluate household consumption throughout the entirety of last year. In 2024, our growth narrative predominantly centered on consumption, which proved to be accurate. According to Eurostat, household consumption experienced the highest growth in Romania (5.9%), Croatia (5.6%), and Hungary (5%). However, despite robust household spending, overall GDP growth in Hungary and Romania fell short of expectations due to other GDP components outweighing the gains. In other CEE countries, private consumption grew at a slightly slower pace, with Slovenia reporting the smallest increase at 1.6%. The outlook for the coming year remains relatively positive. In Poland, Czechia, and Slovenia, private consumption is expected to grow at a slightly faster rate than in 2024. On the other hand, expenditure growth is projected to moderate most rapidly in Romania, influenced by the base effect, frozen pensions and wages in the public sector, and fiscal consolidation. A decline in growth rates is also expected in Croatia, Hungary, and Slovakia, due to various factors that will be detailed in the upcoming Macro Outlooks.