Covid 19 deeply bites EU economies: in Q2, Romania’s GDP is declining by 12.3%, Poland, Hungary enter technical recession

By Constantin Radut
Eurostat information indicates the adjustment of the Romanian economy in the second quarter of this year with the most severe rhythm since the early 1990s, an evolution determined by the incidence of the pandemic and the consequences of this unprecedented shock in the post-war period. GDP fell at a quarterly rate of 12.3% in the second quarter, after rising by 0.3% in the first quarter, according to a report for investors, sent on Friday by Banca Transilvania. Banca Comerciala Romana maintains its economic growth forecast of -4.7% in 2020, recalling that the data for the second quarter are subject to uncertainties and that future revision of the data could be higher than usual.
All Western European states are in a drastic drop in economic indicators.
In the East, Poland officially entered a recession, for the first time since the fall of communism, after GDP fell by 7.9% in the second quarter of 2020, in annualized figures, and by 8.9% compared to the previous quarter, announced on Friday, in a first estimate, the national office for statistics (GUS).
Hungary’s economic fall is even more drastic, of -14.5% in the second quarter and -0.4% in the quarter. 1 compared to the corresponding periods in 2019.
These are the most significant declines since the publication of the data, respectively 1995. In the first quarter of 2020, GDP declined by 3.6% in the euro area and by 3.2% in the EU compared to the previous three months. .
Among the Member States for which data are available for the second quarter of 2020, compared to the previous three months, the most severe decline was in Spain (minus 18.5%), Hungary (minus 14.5%), Portugal (minus 13%). , 9%), France (minus 13.8%), Italy (minus 12.4%) and Romania (minus 12.3%), and the lowest in Lithuania (minus 5.1%) and Finland (minus 3%). ,2%).
Also, in the second quarter of 2020, compared to the same period in 2019, the euro area fell by 15% and the EU fell by 14.1%, after a decline of 3.1% and 2.5%, respectively. % in the first three months of 2020.
These are also the most significant decreases since these data were published, respectively 1995.
Among the Member States for which data are available for the second quarter of 2020, compared to the same period in 2019, the most severe decline was in Spain (minus 22.1%), France (minus 19%) and Italy (minus 17, 3%), and the lowest in Finland (minus 5.2%) and Lithuania (minus 3.7%).