Russia’s decision to cut credit support to the Belarusian government as of the beginning of 2020 has forced Minsk to turn to the EU and international lenders for urgent financial support during the coronavirus crisis.
Pandemics are nothing new in the history of human kind. They differ from global economic crises in many ways. Any economic forecasts prepared during a pandemic, including those referring to the shortest possible periods of time, are highly unreliable and can be a source of increased uncertainty.
A recession is now inevitable. But it will be followed by a quick recovery? The optimists are hoping for a V-shaped recovery, but it can be a little less vigorous, can require a fiscal and monetary stimulus and take a U-shape, and in some sectors even an L-shape.
The lockdown restrictions and the state of emergency declared by the Ukrainian government are ravaging the already faltering economy of Ukraine. At the end of March 2020, Ukrainian Prime Minister Denys Shmyhal presented a new macroeconomic forecast for this year, taking into consideration the...
The Czech government approved the Finance Ministry’s proposal to increase the state deficit to CZK300bn (EUR10.9bn), up from the previously estimated CZK100bn (EUR3.6bn). This is already the worst budgetary performance since the creation of independent Czech Republic.
Forecasts for the Polish, global and European economies are burdened with a very wide margin of error, Piotr Arak, director of the Polish Economic Institute, said at the European Economic Congress (EEC) in Katowice, which took place online in May.
The rate of economic growth in Poland and the Visegrad Group countries (Czech Republic, Hungaary, Slovakia and Poland; V4) has not reflected the markedly weaker economic situation in Germany and the Eurozone countries over the past years.
So far, Poland has maintained strong economic growth for several years. Thanks to that, the situation of public finances has also improved. The crisis we will face in the coming months and the need to increase spending to support the locked down economy will deteriorate the condition of the budget.
“We have become a victim to the mania of talking about innovation and have neglected other important areas of the economy, i.e. people who make the world go round but who do not invent new products,” says professor Lee Vinsel from Virginia Tech.
The Baltic states have gradually started to exit the lockdowns they imposed in March 2020, in response to the coronavirus outbreak. Nonetheless, it is obvious that their economies, severely hit by the crisis, will face a long road to recovery.