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Hungary, Romania, Bulgaria suffer historic slumps over virus
Friday, August 14, 2020       18:14 WIB

Budapest, Aug 14, 2020 (AFP)
Hungary, Romania and Bulgaria have suffered their worst quarterly downturns in decades because of the pandemic, according to official data published in the three EU members Friday.
Hungary's GDP plunged 14.5 percent in the year's second quarter compared to the first three months of 2020, the worst since the communist era ended more than three decades ago.
Second-quarter GDP fell 12.3 percent in Romania and 9.8 precent in Bulgaria, the biggest fall since the 1997 economic crisis.
In Hungary, the new coronavirus crisis impacted services as well as industry, the KSH national statistics office said. The quarterly drop of 13.6 percent year-on-year exceeded analyst forecasts.
"The goal is for the Hungarian economy to return to its pre-crisis path as soon as possible and to achieve again growth of around five percent next year," a Finance Ministry statement said.
Hungary forecasts a 3.0 percent contraction of its GDP for 2020, while Romania expects a drop of 3.8 percent and Bulgaria of 7.0 percent.
The European Commission is counting on a 6-7 percent fall for these countries, which remain among the EU's poorest but whose economies have recorded relatively strong growth in recent years within the bloc.
In Romania and Bulgaria, exports dropped by 18.0 percent and 23.4 percent respectively in the second quarter.
Romania on Friday announced a 14 percent increase in retirement pensions from September, with household consumption a growth engine.
The public deficit is expected to reach 8.6 percent by year end.
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Sumber : AFP

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