Varga: GDP could shrink by 5%
Photo by Alexandros Michailidis / Shutterstock.com
The economy picked up slightly in June, but GDP may still decline by 10% year-on-year in the second quarter and shrink by 5% in the second half of the year, exceeding the previously expected, now optimistic 3% forecast, Minister of Finance Mihály Varga told Kossuth Rádió this week.
File photo: Hungarian Minister of Finance Mihály Varga at an Economic and Financial (ECOFIN) Affairs Council meeting in Brussels, Belgium on February 11, 2019. Photo by Alexandros Michailidis / Shutterstock.com
Varga said that the biggest annual decline was measured in April, when the decrease was 20%. The economic slowdown diminished in May, as the trend reversed at the end of the month, and there were already signs of a slight recovery in June.
The minister added that this year, a general government deficit of 1%, HUF 488 billion, had originally been projected as a share of GDP, but by the end of the first half of the year, with a wide-ranging economic protection plan and stimulus package in place, a deficit of 3.8-4%, more than HUF 1.8 trillion, had already developed.
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.