Polish GDP growth contracts in Q2 2020, economic growth likely to rebound q/q in Q3
The Polish economy has fallen into its first ‘technical’ recession since the beginning of its transition to a market economy in early nineties. Today’s flash release of the GDP showed that the economy is estimated to have dropped 8.2 percent year-on-year and 8.9 percent quarter-on-quarter in the second quarter. Therefore, since the economy had already contracted in the first quarter, Poland has fallen into a recession, noted KBC Market Research in a report.
However, even if the scale of economic collapse was really considerable, it was slightly below the market expectations. Furthermore, the Polish economy is expected to record a positive quarter-on-quarter economic growth in the third quarter, therefore, the Polish recession would be a very short-lived, added KBC Market Research in a report.
Meanwhile, the Hungarian GDP growth contracted 13.6 percent, as compared with expectations of a contraction of 10.1 percent. The negative GDP surprise has put the forint under modest downward pressure and the Hungarian currency underperforms other CE currencies.