According to the correspondent of Fars News Agency, quoted by Bloomberg, the reports indicate that the countries of Eastern and Central Europe witnessed a decrease in economic growth in the third quarter of this year, in such a way that Hungary and the Czech Republic practically entered recession.
The increase in the cost of living, a significant part of which is caused by the increase in the price of energy carriers, is putting pressure on households and companies, and the inflation rate in these countries has reached unprecedented levels. At the same time, we are witnessing an increase in interest rates in the European Union.
Poland, the largest economy in the region, grew by 3.5 percent between July and September, compared with a 5.5 percent increase in GDP in the previous quarter.
The economic growth of Romania and Hungary has also decreased in the last quarter compared to the previous period. The Polish government has been raising interest rates in this country for about a year with the aim of reducing inflation, and this has caused the demand for housing loans to decrease.
After the 40% increase in the price of food in this country in October, the Hungarian government has decided to stop the increase in prices in these countries.
Experts say that while the outlook for Hungary’s economy is relatively bleak, this country is now facing the second three-month period of negative economic growth.
Janos Nagy, an expert of Orest Bank of Hungary, says: In the next quarter, we will see a further decrease in the economic growth of Hungary, and this issue will extend to 2023.
At the same time, the Ministry of Economy of the Czech Republic has announced that the country has entered recession after a heavy drop in economic growth in the third quarter of this year. On the other hand, at the same time as raising the interest rate, the Polish government has also adopted a contractionary policy in the field of government spending.
Ales Michy, the head of the Central Bank of the Czech Republic, has called for limiting salary increases in this country, and some companies in this country have already begun the process of retrenchment and cancellation of recruitment.
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