Hungary Economic Outlook
November 26, 2019A preliminary estimate revealed that growth picked up pace in the third quarter, after slowing to a one-year low in the second quarter. Industrial production rose at a faster rate in Q3 than in Q2, while merchandise exports accelerated markedly in the same period, suggesting that the manufacturing sector resisted the weak European backdrop. Moreover, private consumption likely gained traction given that retail sales growth quickened in Q3 amid improved consumer sentiment, which surged to a near 17-year high in September, and a tight labor market. Indicators for October, however, paint a less rosy picture for the fourth quarter: Economic sentiment sunk to a three-year low in October, underpinned by a plunge in consumer sentiment, which more than offset an improvement in business confidence in the same month. Meanwhile, in other news, the Ministry of Finance proposed new tax cuts and measures to simplify the tax system for 2020, which should stimulate growth and competitiveness in the short-term.
Hungary Economic GrowthGrowth is seen easing next year, as fixed investment loses strength on reduced absorption of EU funds and slower job creation weighs on private consumption. Meanwhile, subdued growth in key trading partners, trade war uncertainties and a hard Brexit pose the main downside risks to the outlook. FocusEconomics analysts see growth at 3.1% in 2020, which is up 0.1 percentage points from last month’s forecast, and 2.7% in 2021.
Hungary Economy Data
5 years of Hungary economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.97||0.0 %||Nov 21|
|Exchange Rate||302.5||-0.68 %||Nov 21|
|Stock Market||43,654||0.04 %||Nov 21|
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Hungary Economic News
November 29, 2019
A second GDP release published by Hungary’s Statistical Office on 29 November confirmed that growth, in annual terms, accelerated to 5.0% in the third quarter from 4.9% in Q2, and thus remains among the fastest growing economies in the Eurozone.
November 25, 2019
The GKI economic sentiment index, a composite indicator, rose to 2.8 in November from minus 0.7 in October, which had marked the worst reading in nearly two-and-a-half years.
November 19, 2019
On 19 November, the Monetary Council of the Hungarian National Bank (MNB) held the base rate steady at a historical low of 0.90%, and kept all other existing instruments unchanged.
November 14, 2019
Economic growth accelerated to 5.0% year-on-year in the third quarter, up from Q2’s 4.9% expansion, according to a preliminary reading released by the Hungarian Central Statistical Office (KSH) on 14 November.
November 13, 2019
Industrial production grew a working-day-adjusted 9.0% year-on-year in September, up from August’s 2.7% expansion and marking a near four-year high, according to the Hungarian Central Statistical Office.