• Efforts of the new Hungarian government to decrease budget deficit are badly planned, lacking credibility and not very ambitious, according to International Monetary Fund. As per its calculations despite all the reforms taking place the public finance deficit should reach 10% of GDP this year and 7.5% next year.
• Polish unemployment rate decreased to 16.5% in May from 17.2% in April. It was about 2% higher in the same period last year.
• Retail sales in Poland increased by 0.6% compared with last month and by 13.7% y/y.
• Hungary’s retail turnover increased by 4.1% in April after 6.2% increase in March.
• Increased volatility on the world’s financial markets in recent weeks is a common healthy correction and does not signal the beginning of a downturn in global economy as stated in the Financial Market Update report from International Monetary Fund. Fears of rising interest rates in the USA and Eurozone as well as global economic imbalances were among the reasons for increased volatility.