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Analysis by Region - Emerging Markets - Hungary

Publisher Oxford Economics
Published Jun 30, 2025
Length 8 Pages
SKU # OFE20204921

Description

We've kept our GDP growth forecast for Hungary unchanged at 0.8% in 2025 and nudged it up by 0.1ppt to 2.6% in 2026. Following a contraction in Q1, we expect activity to rebound in Q2 and beyond, in line with tentatively encouraging high-frequency data. However, firms' sentiment remains subdued as consumer caution is set to keep a lid on domestic demand and weak demand from key trading partners will prevent a meaningful rebound of exports. As a result, we think average annual GDP growth over 2026-2028 is unlikely to surpass 3%.

Table of Contents

8 Pages
Hungary: Outlook remains challenging despite good start to Q2
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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