Investment in Hungary
Hungary - Investment
Economy continues to recover in Q4
According to a preliminary reading, economic activity continued to recover in the fourth quarter of 2020, albeit at a considerably softer pace than in Q3. GDP expanded 1.1% on a seasonally-adjusted quarter-on-quarter basis in the fourth quarter following Q3’s 11.4% rebound, which had marked the strongest expansion on record. On an annual basis, the pace of contraction eased from 4.6% in Q3 to 3.7% in Q4. For the year as a whole, the economy shrank a heavy 5.1%, strongly contrasting 2019’s 4.6% expansion.
While a detailed breakdown is yet to be released, available data suggests that a sharper drop in retail sales and weakening consumer sentiment amid tightened Covid-19 restrictions weighed on household spending and on the tertiary sector in the fourth quarter. Moreover, declining business confidence and downturns in industrial production in November-December point to softer private sector activity.
More detailed GDP data will be released on 2 March.
Looking ahead, GDP is seen rebounding this year as the economy heals from the blow dealt by the pandemic. Recovering consumer and capital spending, supported by fiscal and monetary stimulus, and reviving foreign demand will spur growth. However, further flare-ups of Covid-19 cases and vaccine delays raise uncertainty, clouding the outlook.
FocusEconomics analysts see GDP growing 4.7% in 2021, which is down 0.1 percentage points from last month’s forecast, and 3.8% in 2022.
Hungary - Investment Data
|Investment (annual variation in %)||4.8||-10.6||18.7||17.1||15.3|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||2.08||0.0 %||Dec 31|
|Exchange Rate||295.1||-0.68 %||Jan 01|
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February 24, 2021
The GKI economic sentiment index, a composite indicator, dropped to minus 19.6 in February from minus 16.3 in January.
February 23, 2021
At its 23 February meeting, the Monetary Council of the Hungarian National Bank (MNB) decided to keep the base rate unchanged at the all-time low of 0.60%, and also held all other instruments steady, which was in line with market analysts’ expectations. The MNB’s decision to stand pat was due to a resilient economy and sustained price pressures.
February 16, 2021
According to a preliminary reading, economic activity continued to recover in the fourth quarter of 2020, albeit at a considerably softer pace than in Q3.
February 12, 2021
Industrial output expanded 1.1% year-on-year in December (November: +1.5% yoy), according to a second estimate.
February 12, 2021
Consumer prices soared 0.90% from the previous month in January, following December's 0.30% increase.