GDP decreased by 2.4% in the second quarter
In the second quarter, the domestic GDP decreased by 2.4%, while seasonally and adjusted for the effect of working days, the decline was 2.3%. Compared to the previous quarter, the performance of the economy decreased by 0.3%, so contrary to expectations, the domestic economy remained in a technical recession.
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.
Related news
KSH: industrial production fell by 5.2 percent in May
In May, the volume of industrial production fell by 5.2…
Read more >In the United States, producer prices rose more than expected in June
The US producer price index rose more than analysts had…
Read more >Annual inflation slowed in France in June
In France, the annual consumer price increase decreased to 2.2…
Read more >Related news
Private brands make record gains in first half of year
Private label products reached new heights in the first half…
Read more >Müller updates packaging to increase accessibility for blind shoppers
Müller is updating the packaging of all branded products with…
Read more >Auchan has appointed a new product director
From July 1, László Varga will perform the duties of…
Read more >