Central European Economies Bounce Back From the Pandemic

2021. augusztus 19.

bne IntelliNews

Central Europe is bouncing back strongly from the pandemic-induced recession and Poland, Hungary and Slovakia have already surpassed their end 2019 GDP levels, showed second quarter figures released over the past few weeks.

Western Europe’s recovery has boosted industrial export demand and investment, while the lifting of COVID-19 restrictions has boosted domestic demand and the service sector. Meanwhile, fiscal spending remains loose as special pandemic government spending measures are only gradually being wound down.

Economic growth speeded up in all the Visegrad countries in q/q terms, and the y/y increases compared to the low base in 2Q2019 were eye-popping: Hungary’s GDP soared by 17.7% y/y, Poland’s by 10.7% and Slovakia’s by 10.2%, with Czechia, which has yet to reach 4Q2019 levels, bringing up the rear with a still impressive 7.8%.