Hungary Economic Outlook
June 7, 2022The pace of annual GDP growth accelerated in Q1 2022, as activity was underpinned by robust consumer spending amid a tight labor market and soaring wages, while fixed investment posted a faster increase. Moreover, exports recorded a healthy expansion. The rate of economic growth should moderate in Q2, partially due to a waning low base effect. Inflation spiked further in April, sending consumer sentiment plunging in May, which will be weighing on household spending. That said, business confidence was higher on average in April-May than in Q1, pointing to healthy investment. However, the introduction of a temporary windfall tax on banks’ and companies’ profits—to rein in the public deficit—stirred investor concern and lead to stock market losses in late May. Moreover, the government recently assumed emergency powers because of the Russia-Ukraine war, allowing it to rule by decree.
Hungary Economic GrowthThe economy is set to expand solidly this year, although the pace of growth will slow amid a fading low base effect. Strong wage growth, a tight labor market and pent-up spending will buttress the economy, although soaring inflation will eat into private consumption. The prolongations of the war in Ukraine and of supply bottlenecks pose downside risks. FocusEconomics analysts see GDP growing 3.8% in 2022, which is up 0.1 percentage points from last month’s forecast, and 3.3% in 2023.
Hungary Economy Data
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|Bond Yield||2.08||0.0 %||Dec 31|
|Exchange Rate||295.1||-0.68 %||Jan 01|
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Hungary Economic News
September 2, 2022
GDP growth moderated to 6.5% year on year (yoy) in the second quarter, from 8.2% in the first quarter.
August 30, 2022
At its 30 August meeting, the Monetary Council of the Hungarian National Bank (MNB) raised its base rate to 11.75% from 10.75%, marking the 16th consecutive increase.
August 29, 2022
The GKI economic sentiment index, a composite indicator, fell to minus 14.3 in August from minus 9.4 in July.
August 18, 2022
According to a preliminary reading, economic growth decelerated to 1.1% on a seasonally-adjusted quarter-on-quarter basis in the second quarter, following Q1’s 2.1% increase.
August 12, 2022
According to a second estimate by the Statistical Institute, industrial output expanded 1.5% year on year in June (May: +3.4% yoy).