Hungary Economic Outlook
June 7, 2022
The 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 Growth
The 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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Hungary Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 2.08 | 0.0 % | Dec 31 |
| Exchange Rate | 295.1 | -0.68 % | Jan 01 |
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Hungary Economic News
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Hungary: Industrial output growth improves in April
June 15, 2022
According to a second estimate by the Statistical Institute, industrial output grew 4.7% year on year in April (March: +4.2% yoy).
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Hungary: Industrial output growth speeds up in April
June 9, 2022
Industrial output increased 4.7% year on year in April (March: +4.2% yoy), according to a preliminary estimate.
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Hungary: Inflation comes in at highest level since May 2001 in May
June 9, 2022
Consumer prices rose 1.65% in May over the previous month, picking up from April's 1.63% increase.
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Hungary: MNB hikes rates again in May
June 2, 2022
At its 31 May meeting, the Monetary Council of the Hungarian National Bank (MNB) decided to raise its base rate to 5.90% from 5.40%, marking the 12th consecutive increase.
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Hungary: Economic growth records strongest reading since Q2 2021 in Q1 2022
June 2, 2022
Economic growth improved to 8.2% year on year in the first quarter, from 7.1% in the fourth quarter of last year.
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