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Analysis by Region - Emerging Markets - Hungary

Publisher Oxford Economics
Published Aug 30, 2025
Length 8 Pages
SKU # OFE20418435

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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