Rising wages in Central and Eastern Europe (CEE) have helped lead to a 14% loss of overall competitiveness relative to the region’s main trading partners since 2020, according to a report by economic consultancy Capital Economics. It predicts that a prolonged period of high labour cost growth due to structural supply constraints in labour markets will cause a further erosion of competitiveness. The growth in CEE labour costs has been among the highest in the world in the past few years, propelled by rising inflation and tight labour markets. Labour costs per worker in Poland, Czechia and Hunga…