The European Commission projects Hungary’s GDP will grow b 4.0 percent this year in a winter economic forecast published on Thursday.
The projection is level with the one in the EC’s forecast released in November.
The EC modified its estimate for last year’s decline in Hungary’s GDP to 5.3 percent from 6.3 percent.
It said industry, construction and retail sales remained strong in October and November but the rebound was interrupted by the second wave of the coronavirus pandemic which led to more restrictions.
The EC said the economic contraction was driven by plummeting investment and service exports. However, the assumed easing of restrictions could lead to a quick recovery from mid-2021, it added.
The government projects 4-5 percent economic growth in 2021 thanks to support to be paid for economic recovery this year, Finance Minister Mihály Varga said on Sunday. Varga told pro-govt public Kossuth Rádió, that the government’s action plan for reopening the economy includes 10 million forint (EUR 28,000), interest-free loans offered to SMEs in the most […]Continue reading
The commission projects a 5 percent growth rate for 2022, up by 0.5 percentage points from its autumn forecast.
featured image illustration via Tamás Kovács/MTI