GDP outlook in doubt as non-essential business close

Analysis

The development of GDP may be worse than previously forecast due to the restrictive measures announced last week, writes business daily Világgazdaság.

"If the closures announced yesterday last only two weeks, growth rates above 5% can be maintained this year," said Orsolya Nyeste, senior analyst at Erste Bank.

Looking at the baseline scenario,  GDP growth could have been 5.5%, but recent restrictions are sure to make that worse. According to the expert, with a longer closure period, it is no longer likely that the said 5% dynamics could be maintained.

Péter Virovácz, senior analyst at ING Bank, is more pessimistic, and expects GDP growth to fall from 5-6% to 3-4%.

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