Country Economic Forecasts - Hungary
Hungarian GDP grew by 0.9% q/q in Q2, slightly below Q1’s 1.2%. As the Q2 result was in line with our expectations, our 2018 growth forecast is unchanged at 4.2%. We see consumption being the main driver of growth, as wage growth stays robust given the very tight labour market. Even though trade tensions between the EU and the US have eased, we still expect Hungary’s growth to slow to 2.7% in 2019 and then about 2% in 2020-21, in line with potential.