A fall in real wages and high inflation expectations could reduce consumption early in the year, while the uncertain economic outlook and high-interest rate environment restrain private investments, Századvég said.
Energy upgrades could mitigate the decline in investments, as could state financing for defense industry developments, it added.
Századvég sees domestic demand falling 1.4% in 2023.
Hungary's government puts this year's GDP growth at 1.5%.
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