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Finance Ministry Lowers 2021 GDP Forecast to 6.8%

MTI-Hungary Today 2021.11.04.

The finance ministry has lowered its projection for GDP growth this year to 6.8 percent against the backdrop of higher energy prices,  inflationary pressure and the impact of the fourth wave of the pandemic, Finance Minister Mihály Varga said at a conference organized by the Hungarian Insurers Association (MABISZ) on Thursday.

Earlier, the ministry had put this year’s GDP growth at 7-7.5 percent.

Varga said rising energy prices would “significantly restrain” the performance of European economies, parallel with higher inflation, while the economic impact of the fourth wave of the pandemic, albeit smaller than that of the second and third waves, would still be felt.

He noted that Hungary is one of just ten countries in the European Union whose economies have recovered to pre-pandemic levels.

EBRD Raises Hungary 2021 GDP Growth Forecast
EBRD Raises Hungary 2021 GDP Growth Forecast

The forecast was raised from 5.5 percent in the previous Regional Economic Prospects report, published in June, to 7.7 percent.Continue reading

Featured photo illustration by Szilárd Koszticsák/MTI