Bloomberg reports sharp economic downturn in Eastern Europe against the backdrop of eurozone inflation

The economies of the countries in the east of the EU slowed in the third quarter, as consumers were hit by a sharp increase in energy prices and rising interest rates. It is reported by Bloomberg.

Source: velescrane.ru

The gross domestic product (GDP) in Poland fell to 3.5% between July and September, compared to 5.5% in the previous quarter. In Romania and Hungary, production fell to 4% from 5.1% and 6.5% respectively, the agency writes.

As the eurozone heads into recession, Eastern Europe in particular has been hit by double-digit inflation, forcing central banks to orchestrate a series of rapid rate hikes since last year, the report notes.

Bloomberg cites European Commission forecasts that these three countries, along with the Czech Republic, are heavily dependent on trade relations with 19 eurozone countries, where the economy is also rapidly shrinking and will continue to shrink in the first quarter of next year.

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