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The Regions This Week
August 18, 2017 www.intellinews.com I Page 4
Central Europe
Hungary maintained a hardline stance as it sent its latest response to a European Commission’s infringement procedure against legislation on NGOs and education. The education legislation is widely perceived as specifically targeting the Cen- tral European University, which has aroused Prime Minister Viktor Orban's ire for offering a liberal education. The school was founded by US- Hungarian financier and philanthropist George Soros, who also funds various liberal NGOs in Hungary. State Secretary at the Ministry of Justice Pal Volner said: "It is not our fault if these restric- tions violate the interests of George Soros." He added: “George Soros cannot stand above the law in Hungary, and we hope that the European Com- mission will get back to the rule of law."
Hungarian GDP growth slowed to 3.2% y/y in
the second quarter of the year, a flash estimate from statistics office KSH showed. Although still strong, the reading marks Hungary out as the only Visegrad economy to see GDP growth drop below the (surprisingly rapid) rate of 4.2% recorded in the first three months of the year. Compared to the previous quarter, the economy grew by 0.9%.
A spokesman for Czech President Milos Zeman has stressed that he will appoint the winner of the October parliamentary elections as prime minister. The comment comes in the wake of news two days earlier that the police have asked for the parliamentary immunity of Andrej Babis to be lifted over an allegedly fraudulent EU grant he received. The comment from Prague Castle is clearly meant as a show of support for the billionaire leader of the Ano party and frontrunner in the polls, indicat- ing that the president will appoint him PM even if criminal charges are hanging over him.
Czech GDP growth accelerated to a heady 4.5% y/y in the second quarter, statistics office CZSO reported in a flash estimate. While forecasts for economic growth across 2017 were raised follow- ing Q1’s robust 3%, the reading far outstripped expectations.
Dividend payouts sent the Czech current ac- count diving deeper into deficit in June, data released by the Czech National Bank showed. Following a series of huge, trade-driven surpluses through the early months of 2017, the balance
on the account dipped into negative territory in May with a shortfall of CZK2.9bn (€111mn) and expanded to CZK14.5bn in June, as foreign inves- tors sent the outflow of dividends spiralling to CZK40bn.
Czech industrial producer price inflation eased again in July, data from statistics office CZSO showed. Factory gate price growth slowed by 0.2pp compared with June to sit at 1.1% y/y. The index has dropped steadily since hitting a year- to-date peak of 3.1% in February, which accom- panied the turn of the year surge in the headline consumer price index.
Slovak GDP growth accelerated to 3.3% y/y in the second quarter, the statistics office reported in a flash estimate. Slovak economic expansion remains the slowest in Visegrad, after a Q1 gain of 3.1%. Seasonally-adjusted quarterly growth re- mained unchanged at 0.8% q/q in April-June.
Slovak consumer price inflation jumped in July, expanding to 1.4% y/y, according to data released by the statistics office. The annual rate of expan- sion in the CPI was 0.4pp quicker than in June. On a monthly basis prices grew 0.1%, after remaining flat the previous month. Slovakia’s EU-harmo- nised index of consumer prices (HICP) rebounded in July as it rose to 1.5% y/y. The reading gained 0.5pp over the June HICP result.
Polish GDP growth maintained its heady pace
in 2017 as it pushed to a seasonally-adjusted 4.4% y/y in the second quarter, a flash estimate released by the Central Statistical Office GUS showed. The result shows that the surprisingly rapid rate of growth recorded in the first three months of the year, when GDP gained 4%, persists.