ADVERTISEMENT

EC Puts Hungary GDP Growth at 0.5% in 2023

Analysis

Photo by Feng Yu / Shutterstock.com

The European Commission put Hungary's GDP growth at 0.5% this year in a spring forecast released on Monday, according to a report by state news wire MTI.

The projection is a fraction under the previous, 0.6% forecast published in February and well under the government's forecast for 1.5% GDP growth.

The EC noted that Hungary entered a technical recession in H2 2022 and said monthly indicators point to a further drop in Q1 2023.

The commission puts GDP growth for the whole European Union at 1% for this year.

The EC augurs a pickup in economic growth in Hungary to 2.8% in 2024 supported by lower energy prices and expected disinflation.

Downside risks to the growth outlook stem from a sudden increase in the country risk premium which might also constrain fiscal policy, and from the exposure of the economy to a potential spike in energy prices, the EC said.

The EC sees average annual inflation rising from 15.3% last year to 16.4% in 2023. It projects a sharp drop to 4% in 2024. 

Upside risks to inflation are related to a potentially looser fiscal policy stance, high wage growth in a tight labor market, and the de-anchoring of inflation expectations, the EC said.

ADVERTISEMENT

Hungary Trade Surplus at EUR 308 mln in April Trade

Hungary Trade Surplus at EUR 308 mln in April

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Gloster Acquires P92 IT Solutions Deals

Gloster Acquires P92 IT Solutions

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov... History

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.