WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

The risks related to external tensions tend toward the upside. Despite the challenges posed by certain external events, the economy has demonstrated remarkable resilience, achieving a growth rate of 3.4% last year. Household consumption and investment both played a pivotal role in bolstering the economy, and these are expected to continue as the primary drivers of growth in the medium term. Moreover, inflation has receded and that trend is likely to continue in the coming years. In addition, there has been a surge in foreign direct investment specifically targeting renewable energy projects.