Money Buzz! Europa

Category: Economy

  • Slovakia GDP decreased by 12.1% in the second quarter of 2020

    Slovakia GDP decreased by 12.1% in the second quarter of 2020

    In the second quarter of 2020 the gross domestic product (GDP) at constant prices decreased by 12.1% as compared to the same quarter of 2019.

    After seasonal adjustment GDP decreased by 12.1% as compared to the second quarter of 2019 and by 8.3% in comparison with the previous quarter.

    The volume of GDP at current prices in the second quarter of 2020 reached EUR 21,210.5 million what represented the decrease by 10.4% in comparison with the same quarter of 2019.

    The GDP slighter decline than expected was caused by increased activity in the last month of the second quarter in key industries, especially car manufacturing, as well as small businesses.

    The positive foreign trade balance also contributed to the moderation of the decline in GDP.

  • Poland GDP down by 8.9% in the second quarter

    Poland GDP down by 8.9% in the second quarter

    In the second quarter of 2020 seasonally adjusted GDP (constant prices, reference year 2010) was lower by 8.9% than in the previous quarter and 7.9% lower than in the second  quarter of the previous year.

    Seasonally unadjusted GDP (constant average prices of the previous year) was lower by 8.2% than in the corresponding quarter of the previous year.

    The presented GDP flash estimate for the second quarter of 2020 includes effects of COVID-19 and the introduction of government measures to prevent the consequences of the pandemic.

    Statistics Poland show that „data is preliminary and can be subject to revision, in accordance with the revision policy of quarterly national accounts, in the first “regular” estimate of GDP for the second quarter of 2020 which will be released on August 31, 2020”.

  • Bulgarian GDP, -8.2% in the second quarter of 2020

    Bulgarian GDP, -8.2% in the second quarter of 2020

    Bulgarian GDP recorded a fall by 8.2% in the second quarter of 2020 compared to the same quarter of the previous year and with 9.8% compared to the first quarter of 2020 according to the seasonally adjusted data gathered by National Statistical Institute.

    According to the flash GDP estimates for the second quarter of 2020, the GDP at current prices is 27 058.4 million BGN.

    Gross Value Added in the second quarter of 2020 amounted to 23 510.4 million BGN.

    In the structure of GDP by the expenditure approach the largest share has the final consumption (78.9%), which in nominal terms is 21 345.6 million BGN.

    In the second quarter of 2020 gross capital formation is 5 114.8 million BGN and has a share of 18.9% in GDP. The external balance (exports minus imports) has a positive sign.

  • Hungary GDP down by 13.6% in the second quarter of 2020

    Hungary GDP down by 13.6% in the second quarter of 2020

    The gross domestic product of Hungary went down by 13.6% according to raw data and by 13.5% according to seasonally and calendar adjusted and reconciled data in the 2nd quarter of 2020 compared to the corresponding period of the previous year.

    In the first half of the year, the economic performance decreased by 6.1% according to raw data gathered by Hungarian Central Statistical Office.

    Compared to the previous quarter, the volume of gross domestic product was down by 14.5% – according to seasonally and calendar adjusted and reconciled data – in the 2nd quarter of 2020.

  • Sharp falls in Austrian imports and exports in May 2020

    Sharp falls in Austrian imports and exports in May 2020

    The lockdown in Austria and numerous other countries due to COVID-19 was reflected in the Austrian International Trade in Goods Statistics with sharp falls in both trade flows in May (imports: -24.8%, exports: -25.5%).

    In the period January to May 2020, total imports amounted to €58.08 bn and total exports added up to €57.00 bn, according to preliminary results by Statistics Austria.

    Compared to the corresponding period of the previous year, Austrian imports decreased by 14.3% and Austrian exports declined by 12.9%.

    The global ITGS balance showed a deficit of €1.08 bn. Working-day adjusted, the rates of decrease were 13.5% for imports and 12.0% for exports.

  • Impact of COVID-19 on household consumption and savings in EU

    Impact of COVID-19 on household consumption and savings in EU

    Eurostat shows that the household saving rate in the EU recorded its all-time highest year-over-year increase in the first quarter of 2020 (+3.5 percentage points (pp) compared with the first quarter of 2019).

    The main reason is the marked year-over-year decrease of household final consumption expenditure (-1.7%), in stark contrast with its recent increases above 2%.

    Additionally, the increase of household gross disposable income (+2.4%) also contributed to the increase of the saving rate.

    The household saving rate has increased in all EU Member States for which data are available for the first quarter of 2020. Among the EU Member States, the highest year-over-year increase was observed in Slovenia (+7.7 pp), followed by Poland (+6.8 pp) and Spain (+6.7 pp).

    In contrast, the lowest increase was recorded in Sweden (+1.1 pp), Czechia (+2.0 pp) and Germany (+2.2 pp).

    The largest decreases of household expenditure were observed in Italy (-6.4%), Slovenia (-5.3%) and Spain (-5.2%).

    On the other hand, in six EU Member States, the household individual consumption expenditure increased when compared with 2019Q1, the largest increases in Poland (+5.1%) and Czechia (+4.0%).

  • Average gross earnings at HUF 390.000 in Hungary

    Average gross earnings at HUF 390.000 in Hungary

    In May 2020, average gross earnings amounted to HUF 398.800, 9.4% higher than a year earlier. In January–May 2020, average gross earnings amounted to HUF 390.000, average net earnings were HUF 259,300; both grew by 8.8% compared to the same period of the previous year.

    Full-time employees’ average gross nominal earnings at corporations employing at least 5 persons, at budgetary institutions and significant non-profit organisations in respect of employment, amounted to HUF 398.800 and excluding fostered workers were HUF 409.800.

    Average net earnings were HUF 265.200 excluding tax benefits and HUF 274.500 including them.

    Both average gross earnings and average net earnings excluding tax benefits grew equally, by 9.4%. Average net earnings including tax benefits rose to a greater extent, by 9.9%, compared to the same period of the previous year, in relation to a temporary decrease as well as elimination of social security payment obligations in certain economic branches.

    Average gross regular earnings (gross earnings without premiums and one-month bonuses) were estimated at HUF 370.600, which is 8.4% higher than a year before.

  • Italy GDP, -12,4% in the second quarter of 2020

    Italy GDP, -12,4% in the second quarter of 2020

    In the second quarter of 2020 Italy Gross Domestic Product (GDP) decreased by 12.4 per cent with respect to the previous quarter and by 17.3 per cent over the same quarter of previous year, Istat shows.

    The second quarter of 2020 has had one working day less than both the previous and the same quarter of previous year.

    The quarter on quarter change is the result of a decrease of value added in agriculture, forestry and fishing, in that of industry as well as in services.

    From the demand side, there is a negative contribution both by the domestic component (gross of change in inventories) and the net export component.

    The carry-over annual GDP growth for 2020 is equal to -14.3%.

  • Sharpest drop of household real consumption per capita in EU

    Sharpest drop of household real consumption per capita in EU

    In the first quarter of 2020 household real consumption per capita dropped by 3.0% in the euro area, after a decrease of 0.4% in the previous quarter.

    This decline is the highest since the beginning of the Eurostat time series in 1999.

    Household real income per capita increased in the first quarter of 2020 by 1.1%, after a decrease of 1.1% in the fourth quarter of 2019.

    In the EU household real consumption per capita decreased by 2.9% in the first quarter of 2020, after a decrease of 0.2% in the previous quarter.

    Household real income per capita increased by 1.2% in the first quarter of 2020, after a decrease of 1.0% in the fourth quarter of 2019.

    Household saving rate significantly up

    In the first quarter of 2020, the saving rate increased in both the euro area and the EU by 4.3 percentage points, compared to the fourth quarter of 2019.

    The household saving rate increased in all Member States, for which data are available for the first quarter of 2020.

    The highest increases were observed in Belgium, Denmark and the Netherlands, and the lowest in Poland, Sweden and Czechia.

    For all but two Member States, the increase of the saving rate was explained by the strong decrease of individual consumption expenditure.

    The drop in the individual consumption expenditure of households was the most pronounced in Italy, Spain and Belgium, followed by France. At the same time, the gross disposable income varied, increasing in Poland, Denmark, Czechia, Ireland, the Netherlands and Finland and decreasing in Spain, Italy, Portugal, Germany and Austria.

    Household investment rate down

    In the first quarter of 2020 the investment rate decreased by 0.2 percentage points for the euro area and 0.3 percentage points in the EU.

    Among the Member States for which data are available for the first quarter of 2020, the decrease in investment rate of households was the highest in Spain, France and Belgium.

    Seven Member States recorded an increase in the household investment rate, the highest being observed in Germany, the Netherlands and Denmark.

  • The coronavirus pandemic will put pressure on the revenues of regional and local governments

    The coronavirus pandemic will put pressure on the revenues of regional and local governments

    Moody’s Public Sector Europe said in a report that the coronavirus pandemic will put pressure on the revenues of regional and local governments in the Czech Republic, Poland, Hungary, Russia and Turkey in 2020, leading to higher deficits and debt burdens.

    The economic contraction caused by the coronavirus shock will translate into falling shared taxes and own-source revenues for RLGs in these five countries.

    Their combined funding needs will exceed €25 billion in 2020, up from €21 billion in 2019, before returning to pre-crisis levels in 2021.

    Regional and local governments in Turkey and Poland are the most vulnerable to a prolonged crisis due to high debt exposure and modest operating performance, respectively.

    Regional and local governments’ debt burdens will increase in all five countries before stabilising in 2021 as revenues pick up, except Turkey.

    Turkey, Poland and Hungary will record the highest debt burden increase in 2020.

    “Regional and local governments in the Czech Republic, Poland, Hungary, Russia and Turkey will be hit hard by the coronavirus shock in 2020,” said Vladlen Kuznetsov, a Moody’s Vice President – Senior Analyst and co-author of the report. “However, they will be able to weather the shock, given their mix of good fiscal flexibility, low debt burdens, and low refinancing risks.”

  • Italy in June 2020: exports increased by 14.9% and imports by 20.0%

    Italy in June 2020: exports increased by 14.9% and imports by 20.0%

    Istat latest data show that in June 2020, exports increased by 14.9% and imports increased by 20.0% compared with May 2020.

    Over the last three months, data showed a 28.1% decrease in outgoing flows and a 20.3% decrease in incoming flows in comparison with the previous three months.

    In June 2020 exports to non-EU27 countries decreased by 15.6% and imports decreased by 17.0% compared with the same month of the previous year.

    The trade balance showed a surplus of 4,436 million euro compared with a 4,994 million euro surplus in the same month of 2019.

    In June 2020 excluding energy, the trade balance showed a surplus of 6,015 million euro compared to the surplus of 8,299 million euro of June 2019.

    For the former non-EU28 area, which does not include the United Kingdom, in June 2020, exports decreased by 15.4% and imports decreased by 17.6% compared with the same month of the previous year.

    In seasonnally adjusted terms, exports increased by 15.4% and import increased by 18.5% compared with May 2020.

    The trade balance showed a surplus of 3,568 million euro (there was a 3,852 million euro surplus in June 2019).

  • Slovakia: In June consumer prices rose by 1,8 % compared with 2019

    Slovakia: In June consumer prices rose by 1,8 % compared with 2019

    In June compared with May, consumer prices decreased by 0,1 % in total and compared with June 2019, they rose by 1,8 %.

    Compared with May, in particular, prices of Food and non-alcoholic beverages (milk, meat, oils and fats, bread and cereals), they grew mainly in health (mostly dental and outpatient services).

    Compared with June last year, prices rose mainly of miscellaneous goods and services and of education.

    In year-on-year comparison, consumer prices increased in the divisions of miscellaneous goods and services by 4,6 %; education by 4,5 %; food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; health equally by 2,6 %; communications by 2 %; furnishings, household equipment and regular household maintenance, recreation and culture; restaurants and hotels equally by 1,8 %; alcoholic beverages and tobacco by 0,9 %.

    Prices of transport dropped by 5,4 %, of clothing and footwear by 0,2 %.

    On average, over the first six months of 2020 compared with the same period of 2019, consumer prices increased by 2,3 % in total. 

    In June 2020, index of consumer prices increased, year-on-year in households of employees by 1,7 %, in households of pensioners by 2,1 % and in low-income households by 1,9 %.

    On average,over the first six months of 2020 compared with the same period of 2019, index of consumer prices increased in households of employees by 2,3 %, in household of pensioners by 2,6 % and in low-income households by 2,4 %.