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

The mild winter helped keep the pessimistic scenarios touted at the end of 2022 at bay, and as a result the economy performed better than anticipated. This was partly due to strong foreign direct investment inflows (although the sustainability of these inflows is uncertain). The government’s decision to reinstate price controls on essential foodstuffs has succeeded in bringing down inflation, but it is unclear how long these controls will remain in place. Overall, the economic situation in the country seems more positive than it did three months ago, though many challenges remain.