A leading investment banker predicts that the war in Ukraine will have negative economic implications for Hungary where fast inflation may trigger stagflation.
Hungarian press roundup by budapost.eu
The investment banker and pundit Viktor Zsiday suggests that Hungary’s economic outlook has become uncertain. Zsiday fears that in most developed economies, inflation will remain high in Hungary despite the National Bank’s determination to raise the base rate.
Zsiday predicts that the next years will be marked by increasing monetary restrictions and slow GDP growth.
He adds that the potential suspension of EU funds and a prolonged war in Ukraine may further deteriorate Hungary’s prospects. A swift end to the war and coordinated intervention by the government and the National Bank would be necessary for the Hungarian economy to avoid stagflation, Zsiday concludes.
featured image illustration via MTI/AP/Vadim Ghirda