EC projects 4% GDP growth in Hungary in 2021

Analysis

The European Commission projects Hungary's GDP will grow 4% this year in a winter economic forecast published on Thursday.

According to state news wire MTI, the projection is level with the one in the EC's forecast released in November.

"The current containment measures will start to be eased only once case numbers drop substantially or vaccines become widely available, thus they will remain a drag on GDP growth in the near-term," the EC said. 

"In addition, the manufacturing sector faces supply chain disruptions, which could hinder production in the short-term," it added.

The EC noted upside risks to its forecast because it did not include any measures funded by the Recovery and Resilience Facility in the baseline projection.

The commission modified its estimate for last year's decline in Hungary's GDP to 5.3% from 6.4%.

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