EC raises Hungary 2022 GDP growth forecast to 5.2%

Analysis

Photo by Feng Yu / Shutterstock.com

The European Commission raised its projection for Hungary's GDP growth this year to 5.2% in a summer forecast published on Thursday, according to a report by state news wire MTI.

The projection was raised from 3.6% in the spring forecast released in May.

The EC acknowledged that Hungary's economy continued to "grow rapidly" in the first quarter, supported by strong employment and private sector wage growth, as well as by a tax refund for parents raising children, public sector pay rises and a pension bonus. Exports also "grew briskly", boosted by strong demand and the gradual easing of supply chain disruptions, the EC added.

The EC said Hungary's economic growth is set to "slow down markedly" in the coming quarters, pointing to lower business and consumer confidence and flattening out industrial production and retail sales in April and May.

"The slowdown is expected to affect all demand components and be driven by rising inflation, tightening fiscal and monetary policies, as well as trade disruptions and rising uncertainty in the wake of Russia's war of aggression against Ukraine," it added.

The EC put Hungary's GDP growth at 2.1% for 2023.

The EC forecast average annual inflation of 11.8% in 2022 and 7.6% in 2023.

ADVERTISEMENT

Higher Volume Lifts Farm Sector Output in 2023 Crops

Higher Volume Lifts Farm Sector Output in 2023

Fidesz-KDNP Nominates Constitutional Court Head for Presiden... Government

Fidesz-KDNP Nominates Constitutional Court Head for Presiden...

Rába Earnings Fall as Margins Squeezed Automotive

Rába Earnings Fall as Margins Squeezed

Number of Chinese Tourists in Hungary Quadruples From Pre-CO... Tourism

Number of Chinese Tourists in Hungary Quadruples From Pre-CO...

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.