Hungary Economic Outlook
May 12, 2020The economic scenario has further darkened at the outset of the second quarter, after the Covid-19 pandemic hit the economy in Q1. In March, industrial production contracted at the fastest rate in over a decade and retail sales growth eased markedly, reflecting the impact of lockdown measures imposed since 11 March. Moreover, both business and consumer sentiment fell to over decade lows in April. In response to the crisis, the government announced additional relief measures in April on top of those previously put forward, including support for prioritized sectors as well as interest-subsidized and guaranteed credit facilities for firms; the response package now totals around 13.6% of GDP. Meanwhile, some restrictions have been eased as of 4 May, barring in hotspot areas: Shops and restaurants are reopening, while some business travel is once again allowed.
Hungary Economic GrowthGDP is expected to fall this year as the Covid-19 pandemic deals a heavy blow to the economy. Domestic containment measures will depress household spending and fixed investment, while a feeble global trading environment is set to hammer the external sector. Fiscal stimulus and liquidity-boosting measures should offer some support, however. FocusEconomics analysts see GDP contracting 4.3% in 2020, which is down 1.3 percentage points from last month’s forecast. For 2021, the panel sees GDP growth at 4.7%.
Hungary Economy Data
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Hungary Economic News
June 23, 2020
On 23 June, the Monetary Council of the Hungarian National Bank (MNB) cut the base rate by 15 basis points to 0.75%, marking its first cut since May 2016 and a new historic low.
June 22, 2020
The GKI economic sentiment index, a composite indicator, rose to minus 20.5 in June from minus 28.1 in May.
June 12, 2020
According to a second estimate by the Statistical Institute, industrial output declined 36.6% compared to the same month a year earlier in April, which was a larger contraction than March's 10.0% decrease and matched the first estimate.
June 9, 2020
Consumer prices increased 0.4% from the last month in May, swinging from the 0.6% drop logged in April.
June 5, 2020
Industrial production nosedived 36.6% year-on-year in April (March: -10.0% yoy) according to a first estimate by the Statistical Institute.