EC Forecasts 7% Contraction In Hungary Before Healthy Rebound In 2021

  • 8 Jul 2020 11:26 AM
  • Hungary Matters
EC Forecasts 7% Contraction In Hungary Before Healthy Rebound In 2021
The European Commission projects an economic contraction of 7% in Hungary this year, though it expects a rebound in 2021, with annual growth of 6%.

Its summer economic forecast for Hungary published is unchanged from its projection released early in May.

Household consumption will shrink while investments will “plummet”, the report said, adding that “several ongoing projects are likely to be cancelled or put on hold” because of the recession.

It noted that many Hungarian companies specialise in “highly cyclical products” such as automotive products, and a sharp drop in exports was likely.

Consumer prices are set to rise 3.5% in 2020, lifted by high food prices, before easing to 2.8% in 2021, according to the forecast.

The EC said the Czech Republic’s economy is likely to contract this year by 7.8% and Poland’s is expected to decline by 4.6%.

The forecast for Slovakia is a contraction of 9%.

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