Hungary Economic Outlook
January 14, 2020The economy gained some speed in the third quarter of 2019, after expanding at the slowest pace since Q1 2018 in the second quarter. A more upbeat external sector and increased public expenditure were behind Q3’s pick-up. Exports soared amid an upbeat manufacturing sector, which has so far defied the faltering European economy, while government spending rebounded strongly. Meanwhile, household spending eased somewhat in Q3 amid still-downbeat consumer sentiment, while fixed investment also lost steam, although it remained healthy overall. Turning to Q4, economic activity likely moderated, as suggested by weaker industrial production growth in October–November compared to Q3 due to a slowdown in the manufacture of transport equipment. Moreover, economic sentiment deteriorated in Q4, sliding to an over three-year low in December on a marked drop in business confidence.
Hungary Economic GrowthThe economy is seen losing pace this year on slowing industrial production and fixed investment growth amid reduced absorption of EU funds. Key downside risks to the outlook include uncertainties about the muted global economy, which could hamper output in the all-important automotive sector. FocusEconomics analysts see growth at 3.2% in 2020, which is up 0.1 percentage points from last month’s forecast, and 2.7% in 2021.
Hungary Economy Data
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|Bond Yield||2.08||0.0 %||Dec 31|
|Exchange Rate||295.1||-0.68 %||Jan 01|
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Hungary Economic News
January 14, 2020
Industrial production rose a working-day-adjusted 5.7% year-on-year in November (October: +6.4% year-on-year), according to a second estimate by the Hungarian Central Statistical Office.
January 14, 2020
Consumer prices increased 0.3% over the previous month in December, after rising 0.1% month-on-month in November.
January 8, 2020
Industrial production grew a working-day-adjusted 5.7% year-on-year in November, down from October’s 6.4%, according to a first estimate by the Hungarian Central Statistical Office.
December 20, 2019
The GKI economic sentiment index, a composite indicator, plunged from 2.8 in November to minus 1.1 in December, marking the worst reading in over three years.
December 17, 2019
On 17 December, the Monetary Council of the Hungarian National Bank (MNB) kept the base rate unchanged at a historical low of 0.90% and held all other existing instruments steady.