Private consumption is expected to remain the “key growth driver”, supported by growth of inflation-adjusted incomes and higher personal income tax exemptions and allowances, the EC said.
Investment, especially corporate CAPEX, is expected to be “limited” in 2025, but could rebound in 2026 as headwinds from global trade uncertainties ease and government-supported construction picks up, it added.
Exports are projected to recover, driven by improving demand and new production capacity in FDI-funded facilities, the EC said.
Subdued external demand is among risks to the outlook, it added.
The projection was lowered from 1.8% in the EC’s autumn forecast released in November.
The EC put average annual inflation at 4.1% in 2025. It sees the general government deficit reaching 4.6% of GDP. Hungary’s current-account surplus is set to narrow to 2% of GDP.
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