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Central Europe must diversify to mitigate tariff hit, Moody's Analytics

BUDAPEST (Reuters) -Central Europe has limited fiscal space to offset the economic hit from tariffs given high deficit levels across much of the export-reliant region, which must find new engines for growth amid a shake-up of the world economy, Moody's Analytics said. Despite low direct exports to the U.S., central Europe is among the European Union's most trade-reliant regions, with goods exports as a share of output ranging from 75.5% in Slovakia to 39.4% in Poland -- all above a 34.2% EU average. Tariffs have darkened the outlook for Europe as a whole, raising recession risks and slashing growth prospects in the Czech Republic, Romania and Hungary, Gaurav Ganguly, head of EMEA Economic Research at Moody's Analytics told Reuters.

BUDAPEST (Reuters) -Central Europe has limited fiscal space to offset the economic hit from tariffs given high deficit levels across much of the export-reliant region, which must find new engines for growth amid a shake-up of the world economy, Moody's Analytics said. Despite low direct exports to the U.S.

, central Europe is among the European Union's most trade-reliant regions, with goods exports as a share of output ranging from 75.5% in Slovakia to 39.4% in Poland -- all above a 34.

2% EU average. Tariffs have darkened the outlook for Europe as a whole, raising recession risks and slashing growth prospects in the Czech Republic, Romania and Hungary, Gaurav Ganguly, head of EMEA Economic Research at Moody's Analytics told Reuters..