"Weak external demand, tight financing conditions and delayed disbursement of EU funds, will likely result in a…contraction of GDP in 2023, notwithstanding various government stimuli programs," the EBRD said.
In the previous Regional Economic Prospects, released in May, the EBRD had forecast Hungary's GDP would grow 0.4%.
Hungary's GDP fell 1.7% year-on-year in the first half, the latest data from the Central Statistical Office (KSH) show.
The EBRD sees Hungary's GDP growth picking up to 2.8% in 2024 on the back of recovering domestic demand.
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