Prime Minister Viktor Orbán announced that Hungary will build gas-fired power plants to serve the large industrial centers.Continue reading
The economy of Hungary is expected to expand by 0.6 percent this year and by 3.4 percent next year, following 4.6 percent in 2022, a recent analysis by Századvég shows.
According to the think tank’s estimate, inflation in Hungary is expected to peak in the first quarter of the year, and by the end of the year the rate of inflation could fall below 10 percent to 17.5 percent annually, and to 4.5 percent next year.
The analysis adds that downside risks to economic performance include falling retail sales, uncertainties around EU funding, and falling investment due to the high interest rate environment.
Change of GDP volume compared to next year; Hungary vs EU27 (Source: KSH)
In its analysis, Századvég noted that the Russo-Ukrainian war and sanctions have led to uncertain gas supplies in Europe and a sharp rise in energy prices. On the positive side, they said that the supply difficulties had not led to gas shortages on the continent, but on the negative side, they said that energy prices remained highly uncertain.
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