First glimpse of Q2 GDP growth available
First glimpse of Q2 GDP growth available
With yesterdays release of Q2 GDP growth figures for the Euro area (EA) and the EU, we can now also estimate the economic performance of non-EA countries. The EA reported growth of 0.6% y/y, while the EU saw an expansion of 0.7%. Given that the EA's GDP represents just over 85% of the EU's output, the inferred growth rate for the non-EA bloc stands at approximately 1.2% y/y. Among this group, Q2 data from Czechia, Hungary, and Sweden has been published. Sweden's economy continues to face challenges, with a stagnant 0% y/y and a contraction of -0.8% q/q. Czechia observed a modest 0.3% q/q growth, slightly trailing our projections and market expectations, with a yearly GDP growth settling at 0.4%. Hungary's GDP growth fell significantly below all forecasts, shrinking by 0.2% compared to the preceding quarter, a figure significantly lower than our anticipated 0.6% increase and the consensus. The annual GDP growth was recorded at 1.3%, adjusted by the working day effect, as opposed to the anticipated 2.2%. Estimating the performance of other non-EA economies remains unclear due to numerous pending releases. Nonetheless, for Romania and Poland, the growth is expected to be sufficiently robust to align with the 1.2% non-EA estimate.