Money Buzz! Europa

Tag: gdp

  • Erste Group expects an economic upturn for CEE countries in 2021

    Erste Group expects an economic upturn for CEE countries in 2021

    The corona pandemic caused the CEE economies to enter into recession in 2020, although that economic contraction has turned out to be less severe than had been originally assumed.

    While the impact on Serbia was comparatively mild with a GDP decline of -1.1% in 2020, the Croatian economy plunged by -8.5% compared with 2019.

    In Austria, the GDP decline in the past year was also comparatively strong at -7.2%.

    According to preliminary data, the GDP downturn in 2020 amounted to -5.6% in the Czech Republic, -5.2% in Slovakia, -5.1% in Hungary and -3.9% in Romania.

    Erste Group sees a turnaround in 2021, with the strongest GDP growth expected in Hungary (+5.5%) and Serbia (+5.0%).

    The economies of Croatia, Romania and Slovakia should all also grow by more than 4%, with the Czech Republic very close behind with an expected rise of 3.9%.

    The GDP dynamic that some CEE countries evidenced in the final quarter of 2020 gives reason for optimism: the Hungarian, Slovak and Romanian economies unexpectedly posted growth in Q4 2020 compared with the preceding quarter.

  • The Portuguese economy experienced the most severe decline since 1936

    The Portuguese economy experienced the most severe decline since 1936

    Portugal’s GDP contracted by 7.6% in 2020, according to data released by the National Institute of Statistics (INE), almost double the 4.1% decline in 2012.

    Nine years ago austerity measures were imposed, after the Lisbon authorities have requested international financial assistance.

    In the fourth quarter of 2020, Portugal’s GDP grew by only 0.2%, after an advance of 13.3% in the previous three months.

    Portugal’s booming tourism sector saw in 2020 its worst annual results since the mid-1980s and to date, due to various global bans and restrictions in the context of the coronavirus pandemic (COVID -19).

    Thus, just under four million tourists traveled to Portugal in 2020, a decrease of almost 76% compared to the record 16.4 million tourists recorded in 2019.

    Even more, the number of overnight stays of non-residents fell by 75% to 12.3 million – the lowest level since 1984 and to date.

  • Switzerland’s GDP down by 2.9%, most severe drop since 1975

    Switzerland’s GDP down by 2.9%, most severe drop since 1975

    Switzerland’s GDP declined by 2.9% last year, the most severe drop after falling 6.7% in 1975, according to data released by the State for Economic Affairs (SECO).

    In Q4 2020, Swiss economy grew by just 0.3%, after an increase of 7.6% in the previous three months.

    The drop is a result of new Government restrictions to stop the spread of the pandemic.

    Thus, Swiss economy is now expected to decline between 1.5% and 2% in the first quarter of 2021, after store closures and other restrictions affected consumer spending.

    In December, SECO estimated that the economy would grow by 3% in 2021 and 3.1% in 2022. Switzerland’s GDP typically grows by about 1.7% per year.

  • Top 5 tech billionaires worth $567B, more than 80 poorest countries combined

    Top 5 tech billionaires worth $567B, more than 80 poorest countries combined

    The combined net worth of the top 5 tech billionaires hit $567bn in February, more than the gross domestic product (GDP) of the 80 poorest countries combined, AksjeBloggen reports.

    According to the Forbes billionaire list, the COVID-19 has helped Amazon founder and CEO Jeff Bezos to grow his wealth by $74bn in the last year, with his net worth reaching $187bn this month.

    The International Monetary Fund data show this figure is closest to New Zealand and Iraq’s GDP, which ranked 52nd and 53rd globally with $193.5bn and $178.1bn, respectively.

    Amazon products have become one of the most demanded in the world during the pandemic, as it keeps providing tech items, groceries, and entertainment to people amid lockdown.

    Because of the high demand for its services, the company had to hire an additional 175,000 workers to keep up with surging demand.

    Bill Gates, the Microsoft founder, is the second wealthiest person in the US tech industry and globally. The net worth of the billionaire working with the WHO and drug makers to defeat the coronavirus is currently standing at $120bn.

    Statistics show Gates’ wealth grew by $22bn in the last year and is now closest to Morocco’s GDP, which ranked 59th globally.

    As the fifth-largest tech company globally, Facebook has also witnessed impressive growth in 2020. The Facebook shares rose by 26% in the last year, pushing its CEO’s fortune up by $39bn billion to $93.7bn.

    This figure means that Mark Zuckerberg’s wealth is $700 million above Puerto Rico’s GDP, which stands at $93.9bn.

    The chairman, chief technology officer, and co-founder of software giant Oracle, Larry Ellison, and co-founder of Google, Larry Page, ranked as the fourth and fifth tech billionaires globally, with $84.9bn and $80.4bn in net worth as of this month.

    Their wealth is the closest to Sri Lanka and Dominican Republic’s GDP, which ranked 66th and 67th globally, with $81.1bn and $77.8bn, respectively.

    Top 5 tech billionaires worth more than GDP of Sweden, Thailand or Belgium

    According to Forbes and International Monetary Fund data, the cumulative wealth of the top five tech billionaires also surpasses the GDP of several countries considered to be economic powerhouses.

    For example, their combined net worth is bigger than the GDP of Austria, Norway, or United Arab Emirates, which ranked 28th, 33rd, and 35th globally with $432.8bn, $366.3bn, and $353.9bn, respectively.

    Statistics show that the five tech billionaires’ wealth is the closest to Poland and Sweden’s GDP, as 23rd and 24th economies globally. The two countries’ gross domestic product stood at $580.9bn and $529bn in 2020.

  • 10 most valuable companies worth 12% of Global GDP in 2020

    10 most valuable companies worth 12% of Global GDP in 2020

    Data presented by Bankr indicates that the top ten most valuable companies based on market capitalization are cumulatively worth $10.06 trillion.

    The cumulative value represents about 11.93% of the $84.27 Covid-19 adjusted 2020 global GDP.

    Apple is the most valuable company with a market capitalization of $2.09 trillion or 2.48% of the global GDP.

    Microsoft Corporation is the second most valuable entity at $1.59 trillion in market capitalization.

    E-commerce giant Amazon is the third most valuable company at $1.55 trillion, followed by Alphabet at $1.22 trillion.

    Social media firm Facebook is the fifth most valuable company at $0.79 trillion.

    Alibaba Group ranked sixth with a market cap of $0.72 trillion, followed by Tesla at $0.59 trillion.

    Berkshire Hathaway ranks in the eight spots with a valuation of $0.55 trillion, followed by Visa at $0.49 trillion.

    Taiwan Semiconductor Manufacturing Company Limited is the tenth most valuable company with a market capitalization of $0.47 trillion.

  • Italian GDP expected to increase by 4% in 2021

    Italian GDP expected to increase by 4% in 2021

    In 2020 Italian GDP is expected to decrease by 8.9% and then increase in 2021 (+4.0%), latest Istat data shows.

    This year, the domestic demand net of inventories will provide a negative contribution (-7.5 p.p.) together with foreign demand (-1.2 p.p) and inventories (-0.2 p.p).

    In 2021 the domestic demand will provide a positive contribution (+3.8 p.p) together with net exports (+0.3 p.p.) while inventories will contribute negatively to GDP growth (-0.1 p.p.).

    Labour market conditions will follow GDP evolution over the forecast period with a sharp fall in 2020 (-10.0%) and a recovery in 2021 (+3.6%).

    At the same time, the rate of unemployment will decrease at 9.4% in the current year and will increase at 11.0% in 2021.

  • Greece GDP recovered in Q3 2020 and recorded a 2.3% increase

    Greece GDP recovered in Q3 2020 and recorded a 2.3% increase

    Greece emerges worst quarterly economic decline reporting a 2.3% increase in third quarter of 2020, Reuters reports.

    Greece’s GDP contracted by 14.1% in the second quarter of 2020, the worst decline in at least 25 years, according to revised data released by Athens.

    Greek economy decreased by 11.7% between April and June 2020, confirming official expectations of a more than 10% rebound this year as a whole.

    ”The decrease in tourism by about 75% is reflected in the annual economic data”, said Nikos Magginas, chief economist of National Bank of Greece.

    On Thursday, Greece announced an extension of the restrictions imposed after the second wave of the pandemic until December 14, due to the still high number of coronavirus infections.

  • Austrian economy grew by 12% in Q3 2020 compared to previous quarter

    Austrian economy grew by 12% in Q3 2020 compared to previous quarter

    From July to September 2020, the Austrian gross domestic product (GDP) increased by 12.0% in real terms compared to April to June, as Statistics Austria reports.

    Compared to the third quarter 2019, a decline of 4.0% in real terms was recorded.

    The temporary easing of measures to contain the COVID-19 pandemic stimulated nearly all industries, private consumption, capital formation as well as foreign trade.

    Overall, however, the economy remained below the pre-crisis level.

    Recovery of consumption

    In the third quarter of 2020, consumption of private households showed a substantial growth of 13.3% in real terms compared to the previous quarter.

    The decline of 5.1% compared to the third quarter of 2019 can be traced back to a still weak demand for services.

    In contrast, demand for durable consumption goods, in particular furniture, recorded a substantial catch-up effect (+7.7% in real terms compared to the previous year’s third quarter).

    Surge in growth of services

    Nearly all industries recovered during the summer months. Above all, the industries most affected by the lockdown during the first half of the year recorded remarkable real growth rates from the second to the third quarter.

    Trade and transportation as well as accommodation and food services grew by 32.9% (-4.5% compared to the third quarter of 2019).

    Arts, recreation and personal services increased by 39.2%. However, the losses were not fully compensated (-7.7% in real terms compared to the third quarter of 2019). 

    Manufacturing and construction also recorded an increase

    Manufacturing also gained momentum during the third quarter of 2020 (+15.7% in real terms compared to the previous quarter, -4.0% in real terms compared to the previous year’s quarter).

    Construction recorded real growth of 10.1% compared to the previous quarter and thereby reached pre-crisis levels (+0.2% in real terms compared to the previous year’s quarter). 

    Industries which were rarely affected by the lockdown, such as real estate activities, public administration and health services, remained overall stable (real estate activities: -0.4% in real terms compared to the second quarter and +1.5% in real terms compared to the third quarter of 2019, public administration and health services: +0.5% in real terms compared to the second quarter and +0.6% in real terms compared to the third quarter of 2019).

  • Slovakia: Tourism industries accounted for a share of 2,74 % of GDP in 2018

    Slovakia: Tourism industries accounted for a share of 2,74 % of GDP in 2018

    In 2018, the tourism industries produced a total value of EUR 9,9 billion and accounted for a share of 2,74 % of total GDP in Slovak economy and slightly increased year-on-year.

    The tourism direct gross domestic product reached the value of EUR 2,4 billion, which represented a year-on-year higher value of 10,8 %, the Statistical Office of the Slovak Republic reported.

    The number of people employed in tourism has been growing continuously since 2013, in 2018 there were 180,7 thousand. Most of them worked in food and beverage services and in passenger transport.

    In total, tourism participants spent almost EUR 5,9 billion (expenditures of domestic and foreigners in the territory of the Slovak Republic as well as expenditures of Slovak citizens on trips abroad).

    Total expenditures increased by 10,2 % year-on-year. The highest part of expenditures of visitors in the territory of the Slovak Republic (domestic and foreign visitors in the Slovak Republic) went to the payments for accommodation and food and beverage services (38 % of expenditures).

    The total number of holiday and business trips within the domestic, inbound and outbound tourism reached the value of 60.9 million trips and increased by 9,5 % year-on-year.

    In Slovakia, domestic visitors and foreigners made a total of 52,6 million trips, of which almost three quarters were same day trips.

  • Global economy to shrink by 4.5% in 2020 as China’s GDP grows by 1.6%

    Global economy to shrink by 4.5% in 2020 as China’s GDP grows by 1.6%

    According to the research data analyzed and gathered by StockApps.com, the global economy is set to decline by 4.5% in 2020.

    In 2019, the global GDP grew 2.6% and by 2021, it is projected to grow by 5.0%. South Africa will suffer the hardest blow with an 11.5% decline.

    According to WeForum, the economic shock experienced in 2020 is three times worse than the 2008 financial crisis in terms of annual GDP decline.

    China’s economy could be worth $14.6 trillion in 2020

    The OECD report reveals that all G20 economies apart from China will suffer a recession in 2020. China is set to grow by 1.6% in 2020 according to World Bank projections, compared to a 5.2% global contraction. 

    Based on a report from CNN, China’s economy could be worth $14.6 trillion by the end of 2020, giving it a 17.5% share of the global GDP.

    During Q3 2020, China’s economy surged by 4.9% year-over-year (YoY), up from 3.2% in Q2 2020. In the first week of October 2020, tourist spending surged by 70% and reached $70 billion. Over 630 million people traveled around the country, 80% more than in 2019.

    On the other hand, the US GDP is set to sink by 3.8% in 2020 according to the OECD. However, Morgan Stanley projects that it will rebound to pre-pandemic levels by Q2 2021, two quarters earlier than previous forecasts anticipated.

    For the G20 as a whole, there will be a 4.1% GDP decline while the Euro zone will drop by 7.9%. In addition to South Africa, other hard-hit countries in the G20 will include Argentina (-11.2%), Italy (-10.5%), Mexico (-10.2%), India (-10.2%) and the UK (-10.1%). As a whole, the G20 will shoot up by 5.7% in 2020 while the Euro zone will grow by 5.1%.

  • Blockchain technologies could boost the global economy USD 1.76 trillion by 2030

    Blockchain technologies could boost the global economy USD 1.76 trillion by 2030

    Blockchain technologies are expected to be adopted at scale across the global economy by 2025 and have the potential to boost global gross domestic product (GDP) by USD 1.76 trillion over the next decade.

    Data was revealed in PwC’s Report ”Time for trust: The trillion-dollar reason to rethink blockchain”.

    The potential for blockchain to be considered as part of organisations’ future strategy is linked to research by PwC with business leaders that showed almost two thirds of CEOs (61%) said they were placing digital transformation of core business operations and processes among their top three priorities, as they rebuild from COVID-19.

    At a sector level, the biggest beneficiaries look set to be the public administration, education and healthcare sectors.

    Meanwhile, there will be broader benefits for business services, communications and media, while wholesalers, retailers, manufacturers and construction services, will benefit from using blockchain to engage consumers and meet demand for provenance and traceability.

    In terms of individual countries, blockchain could have the highest potential net benefit in China (USD 40 billion) and the USA (USD 407 billion). Five other countries – Germany, Japan, the UK, India, and France – are also estimated to have net benefits over USD 50 billion.

    The report identifies five key application areas of blockchain and assesses their potential to generate economic value using economic analysis and industry research:

    • Tracking and tracing of products and services – or provenance – which emerged as a new priority for many companies’ supply chains during the COVID-19 pandemic, has the largest economic potential (USD 962 billion).
    • Payments and financial services, including use of digital currencies, or supporting financial inclusion through cross border and remittance payments (USD 433 billion).
    • Identity management (USD 224 billion) including personal IDs, professional credentials and certificates to help curb fraud and identity theft.
    • Application of blockchain in contracts and dispute resolution (USD 73 billion), and customer engagement (USD 54 billion) including blockchain’s use in loyalty programmes further extends blockchain’s potential into a much wider range of public and private industry sectors.
  • Pandemic to trigger $4 trillion loss in global real GDP in 2020

    Pandemic to trigger $4 trillion loss in global real GDP in 2020

    Data presented by Buy Shares indicate that the global economy is projected to lose $3.94 trillion in real GDP. The loss will be recorded across 2020 mainly due to the coronavirus pandemic.

    According to the data, the ten most impacted countries will cumulatively lose $696.56 billion in real GDP.

    The United States is projected to be the most hit country with a loss of $178.4 billion followed by Japan at $86.78 billion while the United Kingdom will be the third most impacted country at  $74 billion.

    France is fourth at $73.34 billion while India will be the fifth most impacted at $71.73 billion.

    Other countries to record massive losses in real GDP include Italy ($58.70 billion), Germany ($55.69), Brazil ($36.06 billion), Russia ($33.27 billion), Mexico ($32.31 billion), Canada ($27.92 billion) and South Korea ($3.76 billion).

    From the research, China is the only country set to register positive growth in real GDP at $51.12 billion.