Hungary Economic Outlook
May 7, 2019Despite upbeat first-quarter indicators, analysts expect last year’s growth spurt to be petering out amid a more challenging external-sector backdrop. Domestic demand still looks to be in the driver’s seat. Both the labor market and consumer confidence have notched gains in recent months, while industrial-sector capacity constraints and the ongoing construction boom have likely buoyed fixed investment. Some cracks have begun to appear, however. Business confidence plunged to a two-year low in April and, more broadly, higher inflation since the outset of the year is expected to take its toll. In early May, all eyes were on Moody’s in the run-up to its credit-rating call—now postponed. Ahead of any announcement, strong fundamentals and well-managed public finances bode well for an upgrade to its Baa3 credit rating—although analysts remain split on the matter.
Hungary Economic GrowthHousehold spending and fixed investment should get reined in this year by slower employment growth and the narrower intake of EU-linked structural funds, respectively. Higher inflation is only expected to compound matters, while short-term growth prospects for the European Union remain a downside risk for the economy. FocusEconomics analysts expect growth of 3.6% in 2019, which is up 0.1 percentage points from last month’s forecast, and 2.7% in 2020.
Hungary Economy Data
5 years of Hungary economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||3.33||0.0 %||May 13|
|Exchange Rate||288.7||-0.68 %||May 13|
|Stock Market||40,538||0.04 %||May 13|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Hungary Economic News
May 15, 2019
The Hungarian economy continued to fire on all cylinders in the first quarter.
May 14, 2019
Industrial output increased a working-day-adjusted 8.0% year-on-year in March, outpacing a 6.0% increase in February and marking the strongest result since October 2017.
May 6, 2019
The GKI economic sentiment index, a composite indicator, plummeted to a 23-month low 2.9 points in April from 6.2 points in March.
April 30, 2019
On 30 April, the Monetary Council of the Hungarian National Bank (MNB) left the base rate at its current record low of 0.90%, and held steady all other existing instruments.
April 15, 2019
Industrial output increased a working-day-adjusted 5.9% year-on-year in February, outpacing a 5.0% increase in January.