Market Trends of central and eastern europe courier, express, and parcel (cep) Industry
Albania faces slower growth amid global challenges, while Bulgaria, Czech Republic, and Poland ramp up high-impact infrastructure investments
- The World Bank predicts that Albania's economy will grow by only 2.2% in 2023. Albania's economic growth may be even weaker in 2024 due to the war in Ukraine and the energy crisis deepening and causing an economic downturn in the eurozone, which may increase transportation costs. However, Bulgaria invested in three projects with USD 1.5 billion allocated to Bulgaria’s Recovery and Resilience Plan (RRP), along with USD 1.1 billion and USD 431 million from National Funding. This includes the construction of an intermodular regional hub outside of Rousse, which is expected to be finished by 2026.
- In 2023, the Czech Republic was expected to open up to 118 km of new highway stretches, including a plan to build over 100 km of highway and 18 km of Class I road. This strategy is expected to reduce traffic congestion, reduce travel time, and improve road safety. The highway and road construction projects may also have a significant economic impact, creating new jobs and boosting the country's economic growth. Improved transportation infrastructure may also enhance accessibility and connectivity, making it easier for businesses to move goods and services across the country.
- The Polish government plans to invest USD 17.5 billion in railway infrastructure and USD 36.6 billion in road infrastructure. The key organizations, such as the General Directorate of National Roads and Motorways (GDDKiA), Polish Railway PKP SA, Polish Railway Networks (PKP-PLK), and the Ministry of Economic Development and Technology and the Ministry of Infrastructure, are taking charge of projects spanning across the nation or specific regions.
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Post approval from Bulgaria's utilities regulator, gas prices reduced by 30.7%, excluding taxes
- Hungary has implemented price regulation measures to keep energy prices low, resulting in one of the lowest gas and electricity prices in Europe. Gas prices in Hungary are available at a reduced unit price of approximately EUR 0.25 (USD 0.26) for up to 1,729 cubic meters per year. On the other hand, Estonia, which has the highest inflation rate in the Eurozone, struggles with rising energy costs, and the government plans to alleviate the impact on households by freezing excise duty on electricity and fuel until April 2024 and considering other measures, such as reducing taxes on fuels.
- In 2021, the price of natural gas increased by 49.41%, up from 2020. The price of natural gas increased by almost seven times, and coal prices quadrupled due to the Russian-Ukraine War, leading to an unstable energy situation and increased consumer price inflation, particularly in the Baltic countries of Estonia, Lithuania, and Latvia. In June 2023, Estonia recorded the highest gasoline prices among Central and Eastern European countries, at 1.84 USD per liter, followed by Albania at 1.79 USD/liter.
- In 2023, Bulgaria’s utilities regulator gave its approval for a reduction of 30.7% in the regulated gas price for February, resulting in a new price of BGN 124.34 (USD 67.8) per MWh (excluding transportation costs, excise, and value-added tax). The price reduction is attributed to the lower prices in international gas markets, owing to warm weather and sufficient gas storage in Europe. This price reduction is expected to benefit significant consumers, and the regulator has decided to maintain central heating prices for the rest of the winter heating season.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Czech automobile manufacturers powered industrial growth in CEE in 2022
- Elevated inflation in the region led by high energy and food price
- The manufacturing sector's contribution to GDP grew by over 17% YoY in 2022 despite facing headwinds in H2 2022
- CEE countries working toward cutting off Russian fuel import dependence by 2050
- Poland is the major contributor to the growth of the CEE construction industry
- Poland and Romania account for 55% of the population in CEE and lead the e-commerce market
- CEE economies implementing export led initiatives to boost trade amidst soaring inflation
- Central and Eastern Europe Continue to Increase the Logistics Sector
