Hungary: Q2 slow economy

In Hungary

The second quarter’s annual growth may not reach the first quarter’s 2.7%, the daily Napi Gazdaság reports upon surveying analysts’ opinions. Hungary may face currency crisis according to credit market analyst CreditSights.

Increase of the GDP may be around 2.4%, but the first preliminary data published by the Central Statistics Office are only due next Tuesday. The growth of industrial production and communal services was slowing down, and decrease of consumption was hindering growth from the consumer side. Inflation in July was an estimated 8.3% according to Napi Gazdaság, an 0.1% decrease compared to last month’s rate. Export and import dynamism are also expected to fall, however export will still trigger growth.

According to credit market analyst CreditSights, Hungary is seventh on the list of emerging market countries that may face a currency crisis resulting from the troubling situation on the financial markets of the US, daily Magyar Hírlap reports. Germany’s Emerging Markets Trader also shares the concerns that the currencies of the CEE region may fold in the H2 due to the weakness of the national economies. The notion that in particular, Hungary is endangered in the region is supported by the fact that the Economist Intelligence Unit described the Hungarian as the third most open, and accordingly third most vulnerable economy in the world.

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