Poland has officially entered a recession for the first time since its transition to a market economy 30 years ago. This is due to the effects of the Covid-19 pandemic and government measures intended to combat it. With its 38 million inhabitants, Poland is by far the largest economy in Central and Eastern Europe.

Poland officially entered recession for the first time since communism, after its gross domestic product (GDP) fell 7.9% in the second quarter of 2020 year on year and 8.9% compared to the previous quarter, the National Bureau of Statistics (GUS) announced Friday in its first estimate. In the first quarter, the Polish GDP fell by 0.4% compared to the previous quarter and increased by 1.6% compared to the same period last year.

The estimate takes into account the effects of the pandemic

The estimate for the second quarter takes into account the effects of the pandemic and government measures to combat it, GUS said in a statement. According to the Polish Institute of Economics (PIE), a government-run analysis center, the Polish economy has suffered less from the pandemic than those of other countries in the region.

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With its 38 million inhabitants, Poland is by far the largest economy in Central and Eastern Europe. In the coming quarters its economy "should recover", estimated PIE, quoted by the PAP agency. 

Poland has experienced uninterrupted growth for 30 years

Poland, which has seen uninterrupted growth since the transition to a market economy 30 years ago, posted growth of 4.1% in 2019 after rising 5.3% in 2018. This year, the country GDP is expected to shrink by 3.4%, according to a revised government projection, against an expected 3.7% increase.