Economics
VW Scandal to Curb Czech, Hungarian GDP Growth, BofA Says
- Worst-case scenario would see growth dented by 1-1.5ppt
- Bank expects much smaller effect on Poland and Romania
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The Czech and Hungarian economies will probably be the hardest-hit by the Volkswagen AG emissions scandal among eastern European nations, according to Bank of America Corp.
In a worst-case scenario, the fallout from the German company’s admission it was lying about its diesel engines’ emissions may shave between 1 and 1.5 percentage points off Czech and Hungarian economic growth and current accounts, BofA analysts led by London-based Mai Doan said. The impact on growth in Poland and Romania will be less than 0.5 percentage point, they wrote in a report to clients on Wednesday.