Money Buzz! Europa

Category: Economy

  • Annual inflation down to 0.3% in the euro area

    Annual inflation down to 0.3% in the euro area

    In April 2020, a month marked by COVID-19 containment measures in all countries, the euro area annual inflation rate was 0.3%, down from 0.7% in March. A year earlier, the rate was 1.7%.

    European Union annual inflation was 0.7% in April 2020, down from 1.2% in March. A year earlier, the rate was 1.9%.

    These figures are published by Eurostat, the statistical office of the European Union.

    The lowest annual rates were registered in Slovenia (-1.3%), Cyprus (-1.2%), Estonia and Greece (both -0.9%).

    The highest annual rates were recorded in Czechia (3.3%), Poland (2.9%) and Hungary (2.5%). Compared with March, annual inflation fell in twenty-six Member States and remained stable in one.

    In April, the highest contribution to the annual euro area inflation rate came from food, alcohol & tobacco (+0.67 percentage points, pp), followed by services (+0.52 pp), non-energy industrial goods (+0.09 pp) and energy (-0.97 pp).

  • Short-time working funds increased to €12 billion in Austria

    Short-time working funds increased to €12 billion in Austria

    Austrian Finance Minister Blümel increased funds for short-time working to €12 billion. Financial police will carry out priority checks to detect fraudulent use of funds.

    ”With coronavirus short-time working, we have created a model that is unique in Europe to keep unemployment as low as possible at a difficult time. Especially in the current phase, it is important to be able to resume operations with well-trained, long-standing employees. Short-time working is a sensible measure to get through the crisis. We are therefore increasing funds for short-time working, which have already amounted to € 10 billion, to a total of € 12 billion. Especially at the present moment, it makes sense to implement a safety buffer to protect jobs”, said Finance Minister Gernot Blümel in a press conference.

    The decline in the number of applications for short-time working shows that companies are now seeing less need for it, which is an important sign that the economy is rapidly recovering.

    Nevertheless, funds are being increased, since with the current volume of applications, any new applications could not otherwise be processed.

    Also, almost 5,000 control notifications have been sent to the AMS and 846 to the Construction Workers’ Annual Leave and Severance Pay Fund.

  • Bulgaria: Annual average inflation in the last 12 months was 3.0%

    Bulgaria: Annual average inflation in the last 12 months was 3.0%

    The annual average inflation in Bulgaria, measured by CPI (consumer price index), in the last 12 months (May 2019 – April 2020) compared to the previous 12 months (May 2018 – April 2019) was 3.0%.

    In April 2020 compared to the previous month the prices of goods and services in the main consumer groups changed as follows:

    • Food and non-alcoholic beverages – an increase of 0.9%;
    • Alcoholic beverages and tobacco – an increase of 0.1%;
    • Clothing and footwear – an increase of 6.3%;
    • Housing, water, electricity, gas and other fuels – a decrease of 2.1%;
    • Furnishings, household equipment and routine maintenance of the house – a decrease of 0.1%;
    • Health – an increase of 0.3%;
    • Transport – a decrease of 6.8%;
    • Communications – a decrease of 0.2%;
    • Recreation and culture – a decrease of 3.6%;
    • Education – the prices remained at the level of the previous month;
    • Restaurants and hotels – an increase of 0.1%;
    • Miscellaneous goods and service – an increase of 0.5%.
  • Annual inflation rate reached 2.1% in Slovakia, in April

    Annual inflation rate reached 2.1% in Slovakia, in April

    In April 2020, the annual inflation rate measured by the harmonized index of consumer prices reached 2.1%, latest data from the Statistical Office of Slovakia show.

    The average annual inflation rate (expressed as the change in the average harmonized index of consumer prices over the last 12 months compared with the average of the previous 12 months) was 2.9 % in April 2020.

    The month-on-month harmonized index of consumer prices of 99.9% was most affected by lower prices in the division Transport (negative contribution -0.29 percentage points); of which the development of fuel prices was responsible for the decline by -0.27 pp.

    The decrease in prices in the division Alcoholic beverages and tobacco is responsible for the negative contribution of -0.04 pp, caused mainly by a decrease in prices of spirits (contribution -0.03 pp).

    The highest positive contribution in the index was recorded in the division Food and non-alcoholic beverages – 0.14 pp, of which increase of food made up 0.15 pp (increase in prices of vegetables 0.10 pp, fruits 0,03 pp and bread and cereals 0.03 pp) and decrease of non-alcoholic beverages: -0.01 pp.

    In the division of Clothing and footwear, there is a seasonal character, which was taken into account when choosing the method of imputation of uncollected prices, while the total contribution to the aggregate index was 0.07 pp.

    The contributions of other divisions reached from -0.02 pp to 0.03 pp.

  • Austria: Inflation decreased to 1.5% in April 2020

    Austria: Inflation decreased to 1.5% in April 2020

    In April 2020, the inflation rate was 1.5%, as Statistics Austria reports (March 2020: 1.6%). Lower prices for fuels were mainly responsible for the decrease of the April inflation rate.

    Price increases for housing, water and energy (+2.3% compared to April 2019) remained the most important price driver, followed by those for food (+2.6%).

    The index level of the consumer price index 2015 (CPI 2015) was 108.1 in April 2020. Compared to the previous month, the average price level remained unchanged with ±0.0%.

    The index level of the harmonised index of consumer prices (HICP 2015) was 108.75 in April 2020, with the harmonised inflation rate amounting to 1.5%.

  • Slovakia gross domestic product decreased by 3.9%

    Slovakia gross domestic product decreased by 3.9%

    In the first quarter of 2020 the gross domestic product (GDP) at constant prices decreased by 3.9% as compared to the same quarter of 2019. After seasonal adjustment, GDP decreased by 4.1% as compared to the first quarter of 2019 and by 5.4% in comparison with the previous quarter.

    At current prices, GDP in the first quarter of 2020 amounted to 21,433.7 mil. EUR, which represents a decrease of 1 % compared to the 1st quarter of 2019.

    The unfavourable economic development is due to the decline in value added in key industries, especially in car production and in several service sectors.

    External demand made a significant contribution to the decreasing GDP, and the dynamics of its year-on-year decline accelerated. Due to the current situation, the growth of domestic demand is insufficient, with final consumption expenditures in the general government sector growing the most. Investment demand has declined in comparison with previous quarters.

    Total employment in the reference period reached 2,425.8 thousand persons. In com­pa­rison with the first quarter of 2019 it decreased by 0.5%.

    Seasonally adjusted total employment decreased by 0.4% as compared to the first quarter of 2019 and by 0.5% as com­pa­red to the fourth quarter of 2019.

  • Czechia GDP decreased by 3.6% in 1st quarter of 2020

    Czechia GDP decreased by 3.6% in 1st quarter of 2020

    According to a preliminary estimate by The Czech Statistical Office, the gross domestic product decreased in the Q1 2020 by 3.6%, quarter-on-quarter, and by 2.2%, year-on-year.

    The results of the Czech economy in the first three months of 2020 were significantly influenced by the global coronavirus pandemic and government restrictive measures related to it.

    The gross domestic product (GDP) adjusted for price effects and seasonally adjusted decreased in the Q1 2020, according to the preliminary estimate, by 3.6% compared to the Q4 2019 and compared to the Q1 2019 it decreased by 2.2%.

    The negative y-o-y GDP development was caused mainly by a decrease in external demand and by lower capital formation. Increasing expenditure of the general government sector had a positive influence.

    The decrease of the gross value added formation was influenced the most by the development in manufacturing and in a group of economic activities of trade, transportation, and accommodation and food service activities.

    Employment remained unchanged in the Q1 2020, compared to the previous quarter; when compared to the corresponding quarter of the previous year, it decreased by 0.5%.

  • The gross domestic product of Hungary, up by 2.2%

    The gross domestic product of Hungary, up by 2.2%

    The gross domestic product of Hungary was up by 2.2% according to raw data and by 2.0% according to seasonally and calendar adjusted and reconciled data in the 1st quarter of 2020 compared to the corresponding period of the previous year, KSH shows.

    The extraordinary situation resulting from the corona virus pandemic had a negative impact on the production of most sections, but market services and, to a lesser extent, industry, continued to be the driving forces for growth in the 1st quarter as a whole.

    Compared to the previous quarter, the volume of gross domestic product decreased by 0.4%.

  • Bulgarian GDP expanded with 2.4% in the first quarter of 2020

    Bulgarian GDP expanded with 2.4% in the first quarter of 2020

    Gross Domestic Product (GDP) expanded with 2.4% in the first quarter of 2020 compared to the same quarter of the previous year and with 0.3% compared to the fourth quarter of 2019 according to National Statistic Institute of Bulgaria.

    Gross Value Added in the first quarter of 2020 amounted to 21 481.0 million BGN.

    In the structure of GDP by the expenditure approach the largest share has the final consumption (84.9%), which in nominal terms is 21 346.5 million BGN.

    In the first quarter of 2020 gross capital formation is 3 649.8 million BGN and has a share of 14.5% in GDP. The external balance (exports minus imports) has a positive sign.

    The first quarter of 2020 GDP at seasonally adjusted data increased by 2.4% compared to the same quarter of the previous year. Gross value added increased by 2.3%.

    As regards the expenditure components of GDP, the final consumption registered a positive economic growth of 4.1%. Gross fixed capital formation decreased by 5.3% in the first quarter of 2020 compared to the same quarter of the previous year at seasonally adjusted data. Exports of goods and services increased by 1.1% while imports of goods and services decreased by 0.6%.

  • Average income per household member increases by 12.7% in Bulgaria

    Average income per household member increases by 12.7% in Bulgaria

    The total income average per household member during the first quarter of 2020 is 1.712 BGN and increases by 12.7% compared to the same quarter of 2019, show National statistical institute latest data.

    The highest relative share of income within the total income is this from wages and salaries (58.5%). The relative share of income from pensions is 27.7%, from self-employment – 5.6%.

    The relative share of income from wages and salaries increases by 0.9 percentage points (pp) and from social benefits increases by 0.5 pp compared to the first quarter of 2019.

    The income from self-employment decreases by 0.8 pp and the income from pensions decreases by 0.2 pp.

    The nominal income by source average per capita during the first quarter of 2020 compared to the same quarter of 2019 changes as follows:

    • Income from wages and salaries increases from 874 BGN to 1.002 BGN (by 14.6%);
    • Income from pensions increases from 424 BGN to 473 BGN (by 11.6%);
    • Self-employment income is without change – 96 BGN;
    • Income from social benefits increases from 35 BGN to 50 BGN (by 42.2%).

    The total expenditure average per household member is 1.486 BGN

    The total expenditure average per household member during the first quarter of 2020 is 1.486 BGN and increases by 5.9% in comparison to the same quarter of 2019.

    The greatest share in forming the total expenditure has expenditure on food and non-alcoholic beverages – 31.0% as well as expenditure on housing – 17.4%, taxes and social insurance contributions – 14.7% and transport and communication – 11.6%.

    The expenditure by group average per capita changes as absolute values during the first quarter of 2020 compared to the same quarter of 2019 as follows:

    • Expenditure on food and non-alcoholic beverages increases from 423 BGN to 461 BGN (by 9.0%);
    • Expenditure on alcoholic beverages and tobacco increases from 59 BGN to 65 BGN (by 11.6%);
    • Expenditure on clothing and footwear decreases from 42 BGN to 35 BGN (by 17.3%);
    • Expenditure on housing (water, electricity, heating, furnishing and maintenance of the house) increases from 255 BGN to 258 BGN (by 1.3%);
    • Expenditure on health increases from 84 BGN to 102 BGN (by 20.7%);
    • Expenditure on transport and communication increases from 170 BGN to 172 BGN (by 1.0%);
    • Expenditure on recreation, culture and education decreases from 49 BGN to 47 BGN (by 5.2%);
    • Expenditure on taxes and social insurance contributions increases from 196 BGN to 219 BGN (by 11.8%).
  • Italy exports and imports fell in March 2020

    Italy exports and imports fell in March 2020

    In March 2020, compared with the same month of the previous year, both exports and imports fell (-13.5% and -18,1% respectively), show latest Istat data.

    Outgoing flows decreased by -12.2% for EU countries and by -14.7% for non EU countries.

    Incoming flows dropped by -15.5% for EU area and by -21.7% for non EU area. The trade balance in March 2020 amounted to +5,685 million Euros (5,082 million Euros for non EU area and +603 million Euros for EU countries).

    In March 2020, import prices decreased by 3.1% on monthly basis (unchanged for the the euro zone, -5.9% for the non-euro zone). Over the last three months, compared to the previous three months, import prices decreased by 2.0% (-0.3% for the euro zone and -3.6% for the non-euro zone).

    Import prices decreased by 5.1% in March 2020, compared to the same month a year ago (-0.7% for the euro zone, -9.2% for the non-euro zone).

  • Eurostat: How could coronavirus impact EU tourism?

    Eurostat: How could coronavirus impact EU tourism?

    To gauge the potential loss that the tourism sector will have experienced because of the Covid-19 outbreak restrictions, Eurostat examined tourism figures of the previous two years for the periods of March-June (the ‘spring shoulder season’) and July-August (the ‘peak summer season’).

    Spring and summer are the most popular seasons for Europe’s tourism

    Spring and summer are the most popular seasons for Europe’s tourism industry. In 2019, the number of nights spent by residents and non-residents in EU tourist accommodation establishments during the spring and the peak summer season each accounted for nearly one-third (32%) of the annual total for overnight stays.

    The share of nights spent in these accommodation establishments was particularly high in the month of June for the spring season, accounting for 11% of the annual total, as well as in the months of July (15%) and August (17%). A similar trend is observed for both residents and non-residents of the countries visited.

    Across the EU Member States, the share that the spring season contributes towards annual tourism accommodation stays is relatively similar, ranging from 24% in Croatia and 27% in Bulgaria to 35% in Cyprus, Luxembourg, Malta and the Netherlands. For the peak summer season, this share ranged from 23% in Malta to 58% in Croatia.

    390 million trips in spring, 270 million trips during peak summer season

    In spring 2018, EU residents made almost 390 million tourist trips, representing 34% of the annual total. During these trips, they cumulated over 1.8 billion overnight stays and spent €170 billion.

    More than two-thirds (70%) of these trips were inside the country of residence, while 22% of them were trips to other EU countries and 8% to destinations outside the EU. A similar pattern was observed for trips throughout the entire year, including during the peak summer season.

    In summer 2018, over 270 million trips were made by EU residents, accounting for 24% of the annual total. These trips amounted to over 1.9 billion overnight stays and almost €138 billion in tourism spending.

    Spain and Italy top destinations for intra-EU visitors

    The EU residents’ preferred European destinations outside their own country were: Spain, Italy and to a lesser extent France and Germany, which together accounted for 49% of intra-EU trips during spring 2018 and 45% in summer.

    From March to June, Austria dominated the top-5 of preferred intra-EU destinations, in July and August Croatia was among the most popular destinations for EU tourists.

    Luxembourgers prefer to travel abroad during spring and summer

    In 2018, residents of Luxembourg preferred to travel abroad, with almost all their tourist trips (98%) being outside their country of residence in spring and 99% of their trips being abroad during the peak summer season.

    A similar trend was observed for residents in Belgium, where a vast majority of trips during the spring and peak summer season were made outside the country of residence (79%).

    At the other end of the scale, residents in Romania and Spain preferred to travel within their country of residence in spring, making 94% and 90% domestic trips respectively.

    During summer, this was also true for the Greeks, Romanians, Portuguese and Spanish, who took the vast majority of their tourist trips inside their country of residence (95%, 91%, 90% and 89% respectively).