S&P cuts CEE growth forecast to 2%, raises inflation outlook to 4.2%

S&P Global Ratings has cut its GDP growth forecast for Central and Eastern Europe by 0.4 percentage points to an average of 2%, while raising its inflation forecast by 0.6 pp. to 4.2%. The combination of weaker growth and higher inflation signals a stagflation risk for the region. The revisions were made relative to S&P's forecasts from earlier in the year.