Page 80 - bne magazine November 2021_20211104 uzbekistan risding

80 I New Europe in Numbers bne November 2021
Poland monetary policy rate vs CPI inflation y/y
Poland’s central bank unexpectedly hikes rates by 40 bps to 0.5%
Source: Polish state statistics agency
Russian corporate profits RUB bn (cumulative)
Source: GKS
Hungary inflation y/y
Source: Central bank of Hungary
Romania: Foreign direct investments by element (EUR bln)
The National Bank of Poland (NBP) hiked its reference rate by 40 bps to 0.5% on October 6. The move comes as a surprise as the market had predicted a hike in November that would coincide with the central bank’s new projections of inflation and economic growth. But fast-accelerating consumer prices, which climbed to 5.8% y/y in September – a 20-year high – has pushed the rate setters to ending their dovish stance earlier than expected.
Poland has now followed Hungary and the Czech Republic – after
a lag of four months – in reacting to rising inflation in Central Europe caused by higher energy prices and a rebound from the COVID-19 induced recession.
Russian corporate profits soar in July to $38.6bn
The profits of Russian corporate profits soared in July, the last month of available data, rising to RUB2,767bn ($38.6bn), more than twice as much as the RUB1,061bn that companies earned in the same month a year earlier, but also more than twice as much as the RUB1,070bn they earned in July 2019, the last year of strong growth. This July’s result was by far the best result of any month this year as well as the best monthly result in the last five years, putting Russian companies on course for a banner year.
On a cumulative basis companies earned a total of RUB14,368bn ($197.6bn) in the first seven months of this year. That was almost triple the RUB5,370bn they earned in 2020 and a third more than the RUB9,111bn they earned in 2020.
Hungary’s inflation jumps to near nine-year high
Hungary's inflation accelerated to an annual 5.5% in September, a near nine-year high, from 4.9% the previous month, in line with analysts’ forecasts.
On a monthly basis, prices edged up 0.2%. Core inflation rose from 3.6% in August to 4%, the highest since August 2020. Fuel prices jumped 21.6% y/y in September.
Romania is mostly reinvested profits
Foreign direct investors in Romania derived €9bn net profits and €2.74bn losses, resulting in a combined figure of €6.26bn (nearly 2.9% of GDP) in 2020, according to a survey conducted by the National Bank of Romania (BNR) in cooperation with the National Institute of Statistics (INS).
The foreign direct investors also derived €0.59bn in net interest derived from loans extended to local subsidiaries. This results in a total of €6.85bn (nearly 3.2% of GDP) net revenues derived by FDI investors from their Romanian subsidiaries.
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