The volume of Hungary’s construction output in February decreased by 11.7% compared to the January data, based on seasonally and working-day adjusted indices construction output. Aside from the unpleasant surprise of lower output, the volume of orders was also not very rosy. Nevertheless, it would be too early to give up on this year's outlook.

In the fourth quarter of 2020, seasonally adjusted GDP decreased by 0.6% in the euro area and by 0.4% in the EU, compared with the previous quarter, according to a flash estimate published by Eurostat, the statistical office of the European Union. These declines follow a strong rebound in the third quarter of 2020 (+12.4% in the euro area and +11.5% in the EU) and the sharpest decreases since the time series started in 1995 observed in the second quarter of 2020 (-11.7% in the euro area and -11.4% in the EU). According to the first estimation of annual growth for 2020, based on seasonally and calendar adjusted quarterly data, GDP fell by 6.8% in the euro area and 6.4% in the EU.

The stable 2021 outlook for sovereigns in Central and Eastern Europe (CEE) reflects their robust economic growth prospects and strengthened ability to carry and reduce debt, which make their credit profiles resilient to the sharp deterioration of their public finances in 2020, Moody's Investors Service said in a report published today. Ageing populations and structural economic change will remain longer-term challenges for the region.

The geopolitical diversity of the EMEA region means that there are multiple economic and business permutations to consider in light of a new first term for President Biden and the Democratic party. There is a strong likelihood that the EU and national EEA (European Economic Area) governments will cooperate more openly with the United States under President Biden. Outside of the EEA, in Middle East, Africa, Russia and Turkey ongoing relationships will be more mixed.

Manufacturing PMIs in CEE showed that the recovery slowed at the end of Q3 2020 and the carryover to Q4 2020 was small (and even negative in some cases). This assessment pertains also to the outlook, with new orders and output expectations either rising less or showing a slower recovery in September than in the previous months, according to Dan Bucsa, Chief CEE Economist at UniCredit Bank in London.

Employers may not unilaterally order employees to work from home even in case of a strong resurgence of coronavirus infections and this would require a mutual agreement under new remote work rules that can now be considered final. Home officing would also be supported by a lump sum payment of overhead costs to the tune of HUF 16,100 (around €45) per month, tax-free. There are, however, still question marks regarding health and safety issues, local daily Magyar Nemzet reports.

The latest online panel discussion of Property Forum focused on the effects of the COVID-19 lockdown on the Romanian property industry. The experts discussed, with the moderation of Răzvan Gheorghiu-Testa FRICS, Partner and Co-Head of Real Estate Practice Group at Ţuca Zbârcea & Asociaţii, how governmental measures affect the market and how different asset classes are impacted by the crisis.  

For residential developments executed in brownfield zones a VAT rate of 5% will apply instead of the normal 27%, the Minister of the Prime Minister's Office announced today.

Countries in CEE acted early by closing their borders and introducing lockdown measures in response to the pandemic. Now, Austria and the Czech Republic are among the first in Europe to begin lifting their coronavirus restrictions.

Most CEE governments have already introduced measures aimed at helping employed people and struggling businesses amid the coronavirus outbreak. In most countries, at least half of the average wage will be taken over by the state, up to 80% or more in certain countries. Hungary is the only country in the region where no concrete measures have been announced yet. We looked at what workers of affected companies can expect across the region.