Monthly Report No. 02/2022


Tomasz Geodecki, Richard Grieveson, Doris Hanzl-Weiss, Olga Pindyuk and Oliver Reiter

wiiw Monthly Report No. 2, February 2022
54 pages including 33 Figures and 1 Box

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  • Chart of the Month: Omicron wave is sweeping CESEE
    by Olga Pindyuk
  • Opinion Corner: Let’s hope the central bankers are right about inflation
    by Richard Grieveson
    Central banks hope that the currently very high inflation will pass without major monetary tightening or balance-sheet reduction. There are plenty of reasons to think that they are right. But if they are wrong, and if much more monetary tightening is required, the impact on the financial sector, the real economy and even the stability of the euro area will be serious.
  • Semiconductor shortage impacting the EU-CEE automotive industry 
    by Doris Hanzl-Weiss and Oliver Reiter
    The current global semiconductor shortage, which has been triggered by the COVID-19 pandemic, is likely to persist and may well last until 2023, as new production capacities take time to build up. The automotive industry and those EU-CEE economies that specialise heavily in the sector – Slovakia, Czechia, Hungary and Romania – have been particularly badly affected, with resulting economic losses of up to 1% of GDP last year.
  • The business services sector in Central and Eastern Europe
    by Tomasz Geodecki
    Following the EU’s eastern enlargement, global players in the business services sector started to invest actively in the low-cost EU-CEE economies. Thanks to continued strong productivity growth, the cost competitiveness of these locations was generally maintained between 2004 and 2014. Moreover, despite the growing internationalisation of the sector, its cooperation with local businesses increased. The rapidly improving skills – as well as the growing importance of knowledge-intensive services – contributed further to the region’s importance as a location for business services in Europe.
  • Monthly and quarterly statistics for Central, East and Southeast Europe


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database, wiiw FDI Database

Keywords: business services, cost competitiveness, integration into local economy, skills, semiconductor chips, automotive industry, inflation, monetary policy, wage-price spiral, COVID-19, vaccination rate

Countries covered: CESEE, EU-CEE, non specific

Research Areas: Macroeconomic Analysis and Policy, Sectoral studies