
Analysis by Region - Emerging Markets - Hungary
Description
We've cut our GDP growth forecasts for Hungary by 0.1ppt to 0.7% in 2025 and 2.5% in 2026. Despite a modest GDP uptick over Q2, growth momentum remains fragile. Weak foreign demand is the main factor weighing on the economy. Domestic demand is unlikely to provide solace despite the pre-electoral fiscal stimulus. We therefore think near-term risks are tilted to the downside and estimate average GDP growth over 2026-2028 is unlikely to surpass 3%.
Table of Contents
8 Pages
- Hungary: Industrial recession indicates outlook remains fragile
- Forecast overview
- Recent developments
- Short-term outlook
- Key drivers of our short-term forecast
- Economic risk
- Economic risk evaluation
- Risk warnings
- What to watch out for
- Exposure to key global risks
- Long-term prospects
- Alternative long-run scenarios
- Background
- Economic development
- Structure of the economy
- Balance of payments and structure of trade
- Policy
- Politics
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