GDP decreased by 2.4% in the second quarter

Industry and market services, including trade and transport and warehousing, contributed to the decline in economic performance to the greatest extent. At the same time, the decline was moderated by the favorable performance of agriculture. The decrease in the added value of services was partially offset by the significant growth of healthcare services, which approached its performance before the coronavirus epidemic.

In the second quarter, the drop in real wages continued to drag down retail trade, but cautious spending by households also contributed to the decline. Among the sub-sectors of the industry, last year’s explosion in energy prices negatively affected the energy-intensive sectors (for example, chemical industry, fertilizer production, metal industry, production of rubber, plastic, non-metallic minerals), some players were forced to temporarily stop or curtail production. In addition, the decrease in internal and external demand for food led to a decline in the food industry as well. On the other hand, thanks to the easing of supplier problems, vehicle production performed well, and thanks to the upswing in battery production, the production of electrical equipment was also a strong sector. The construction industry also performed poorly due to the decline in state and EU-funded investments, the declining demand and desire to build due to high interest rates.