Money Buzz! Europa

Tag: Hungary 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.

  • 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.

  • World Bank sees the deepest recession since the Second World War

    World Bank sees the deepest recession since the Second World War

    According to World Bank forecasts, the global economy will shrink by 5.2% this year. 

    That would represent the deepest recession since the Second World War, with the largest fraction of economies experiencing declines in per capita output since 1870, the World Bank says in its June 2020 Global Economic Prospects.

    Economic activity among advanced economies is anticipated to shrink 7% in 2020 as domestic demand and supply, trade, and finance have been severely disrupted.

    Emerging market and developing economies (EMDEs) are expected to shrink by 2.5% this year, their first contraction as a group in at least sixty years.

    Per capita incomes are expected to decline by 3.6%, which will tip millions of people into extreme poverty this year.

    In CEE, Serbia has the slowest GDP decline this year and Croatia the biggest growth in 2021

    For the Bulgarian economy, the forecast is a decline of 6.2% for 2020 and a recovery next year to a growth of 4.3%. 

    Croatia will suffer a GDP decline of -9.3% in 2020 and a recovery of 5.4% in 2021.

    Hungarian economy will have a decline of -5.0% this year and a rise of 4.5% next year.

    Poland is in a better situation with an economic decline of -4.2% in 2020, but a slower recovery, of just 2.8% in 2021.

    For Romania, GDP will decrease by -5.7% this year and a rise of 5.4% in 2021.

    Serbian GDP will decline by -2.5% in 2020 and a recovery of 4.0% in 2021.

  • Hungarian GDP rises by 2.2% in the 1st quarter of 2020

    Hungarian GDP rises by 2.2% in the 1st quarter of 2020

    Gross Domestic Product was 2.2% higher in Hungary in the 1st quarter of 2020 than in the corresponding period of the previous year, KSH latest data shows.

    The corona virus pandemic had a negative impact on the performance 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.

    According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 2.0% compared to the corresponding quarter of the previous year and decreased by 0.4% compared to the previous quarter.

    Industry went up by 1.7%

    The performance of industry went up by 1.7%, within which that of manufacturing by 1.3% compared to the same period of the previous year.

    Among manufacturing branches, the largest contributors to the growth of industry were the manufacture of electrical equipment and the manufacture of computer, electronic and optical products.

    The value added of construction increased by 3.0%. The performance of agriculture decreased by 0.6% compared to the corresponding period of the previous year.

    The gross value added of services was up by 2.4% in total, the highest growth (8.8%) was reached by information and communication. The value added of wholesale and retail trade and accommodation and food service activities as well as professional, scientific, technical and administrative activities equally rose by 5.0%.

    The performance of financial and insurance activities went up by 4.4%. The total value added of public administration, education and health decreased by 2.8%.

    Services contributed by 1.2 percentage points, industry by 0.4 percentage point and construction by 0.1 percentage point to the 2.2% rise of gross domestic product in the 1st quarter of 2020. 

  • 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%.