Virus-hit Poland in first recession since communist era: Official data

WION Web Team New Delhi, Delhi, India Aug 14, 2020, 04.48 PM(IST)

A woman holds Polish an EU flags as she attends a protest against judiciary reform in Warsaw, Poland. Photograph:( Reuters )

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During the global financial crisis of 2008 and 2009, Poland was the only European Union member state enjoyed a healthy growth rate and avoided recession. 

An estimation by Poland's statistics office on Friday showed that the country is experiencing recession since the end of the communist era that happened three decades ago. 

Due to the coronavirus lockdown, the country's economy shrank by 8.9 per cent in the second quarter. The economy witnessed a contraction of 0.4 per cent in the first quarter.

Recession is defined two consecutive quarters of contraction.

During the global financial crisis of 2008 and 2009, Poland was the only European Union member state enjoyed a healthy growth rate and avoided recession. 

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Country's GDP grew by 4.1 per cent in 2019, which was slightly lower than that of 2018 (5.3 per cent). 

According to the Polish Economic Institute, an independent research centre, country's economy "should recover".

The Polish government has forecasted 3.4 per cent contraction this year, down from a previous prognosis of 3.7 per cent growth.

The European Commission forecast in May that the Polish economy would shrink by 4.3 per cent overall in 2020 and bounce back with 4.1 per cent expansion in 2021.

(Inputs from AFP)