Wage convergence: how CEE is staying competitive as costs rise

Labour costs across Central and Eastern Europe have converged with Western Europe over the past decade, narrowing the region's traditional cost advantage.

Investment agencies respond by emphasising productivity, R&D super-deductions, and the depth of automotive and electronics clusters rather than headline wages alone.

Automation and capital-deepening are most advanced in Czechia, Slovakia and Hungary, where manufacturing density is highest.

The outlook depends on sustained EU transition funding and on whether new gigafactory-scale projects generate enough local supplier value.