Page 66 - bne IntelliNews magazine February 2025

66 I New Europe in Numbers bne February 2025
Russian inflation y/y
"Out of control" Russian CPI inflation up again to 9.5% in December
Russia’s runaway consumer price inflation (CPI) made more gains in December, rising to 9.5% y/y, as the Central Bank of Russia (CBR) continues to lose the fight to reign in rising prices.
“The rise in Russian inflation to 9.5% y/y in December is likely to be followed by an increase to more than 10% early this year. The central bank has set a high bar for further tightening but we think the balance remains tilted towards another interest rate hike this quarter,” Liam Peach, the senior emerging market economist with Capital Economics, said in a note.
Ukraine's international reserves soared to new all-time high of $43.78bn in 2024
Ukraine's international reserves soared to a new all-time high of $43.78bn as of 1 January 2025, marking a 9.7% increase in December alone, according to data released by the National Bank of Ukraine (NBU).
The new record surpasses the previous peak recorded in April 2024 by $21bn, underscoring the critical role of international aid in bolstering the nation’s economic resilience amidst ongoing challenges. December's sharp growth in reserves was attributed to inflows from international partners ahead of Donald Trump taking office.
Hungary's industry mired in recession in November as October bounce proves one-off
Industrial output in Hungary fell 4.2% year on year in November and by 2.9% when adjusted to working days, according to preliminary data from the Central Statistics Office (KSH) released on January 9.
After a bounce in October, the monthly data showed a 1.6% contraction, dashing hopes of a potential turnaround, financial website Portfolio.hu noted, adding that given
the persistent weakness of European economies, namely Germany, the latest figures come as little surprise.
Net FDI in Romania dips in 2024
Net foreign direct investments (FDI) in Romania contracted by 7% year on year to less than €6bn in the 12 months to November 2024, according to data published by the National Bank of Romania (BNR). During this period, the FDI-to-GDP ratio fell to 1.7%, down from 2.2% in the previous 12 months.
FDI covered only a small fraction of the current account deficit, which widened to 7.9% of GDP during the same timeframe. Meanwhile, gross external debt rose by €19.2bn, equivalent to 5.3% of Romania’s 2024 GDP.
Source: CBR
Ukraine gross intl reserves $mn
Source: NBU
Hungary industrial production y/y
Source: Hungary state statistics agency
Romania: net FDI inflows: total vs equity [rolling 12M]
Source: bne IntelliNews
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