Audi slowdown could put brakes on economy

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In light of Hungaryʼs heavy dependence on the automotive sector, a planned slowdown by the local subsidiary of German car maker Audi could hurt the economy significantly, according to a report published yesterday on vg.hu, the website of business daily Világgazdaság.

Without the automotive industry, the Hungarian economy’s performance would drop by one-third, GDP would be down by 5%, and economic growth would slow by one percentage point, the news portal noted, adding that the deficit would grow by a minimum of HUF 140 billion as a result.

At the same time, a new plant planned by Mercedes-Benz, its second in Kecskemét, should eventually improve the automotive industry’s performance, albeit while further increasing the country’s dependence on the sector, observed news portal index.hu.

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