EC sees Hungarian economy contracting by 7% this year

In Budapest

Image by Lightspring /

The European Commission (EC) expects Hungaryʼs economy to contract by 7% this year, impacted by the coronavirus pandemic, state news wire MTI reports, citing a quarterly forecast released today.

Image by Lightspring/

"Economic activity is estimated to have begun contracting in March, and should reach its trough in the second quarter of 2020. A gradual economic recovery is projected in the second half of the year as containment measures are assumed to be gradually lifted," the EC said in the spring forecast.

"Constraints on industrial and construction activity remain moderate, but the international recession can hit manufacturing particularly strongly due to the dominant role of highly cyclical industries (e.g. automotive)," the EC warned.

Hungaryʼs government projects a 3% decline in GDP this year, but allows for a sharper drop if the pandemic drags on into Q3 or Q4.

The EUʼs executive body acknowledged initial government measures focused on liquidity provision as well as a moratorium on repayments for all retail and corporate borrowers but said the overall fiscal response "has been muted so far".

The EC projects Hungaryʼs unemployment rate will climb to 7% this year "due to the flexibility of the labor market".

It added that liquidity support and temporary job protection policy measures are expected "to provide limited containment only".

In these challenging times, is committed to providing you with up-to-date and accurate information. We will post at least three coronavirus updates each day, including weekends and bank holidays, at 10 a.m., noon and 5 p.m., or as close to then as developing events allow. Breaking news and other stories will be added throughout the day Monday-through-Friday.


Zwack Profit Climbs 8% Figures

Zwack Profit Climbs 8%

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Magnus Aircraft Signs CNY 65 mln Order Deals

Magnus Aircraft Signs CNY 65 mln Order

Accommodation Fully Booked Over Pentecost Weekend Tourism

Accommodation Fully Booked Over Pentecost Weekend


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.