On the revenue side, negative macroeconomic processes contributed to the decrease. As a result of shrinking consumption, VAT revenues were 1.8% lower than in the previous year, while personal income tax revenues fell by 1.2% because of the decrease of employment and the increase of part-time employment.
On the expenditure side, the increase was attributable to economy protection and healthcare expenses. Expenses on direct employees’ incomes increased by 9.7%, while social allowances were 8.5% higher and other expenses grew by 37.5%.
In the summer, however, several industries showed signs of recovery.In August, the volumes of industrial output and retail sales were only slightly below their last year’s figures. In September, the arrival of the second wave of the coronavirus once again increased the uncertainty in the economy. If first-wave lockdowns are avoided, the economic recession might be lower, too.
After reaching approximately 4% in the past months, inflation slowed down to 3.4% in September. More specifically, food prices continue to increase dynamically, by 7.3%.
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