GDP Could Shrink By 5%, Says Hungarian Finance Minister

  • 27 Jul 2020 9:38 AM
  • Budapest Business Journal
GDP Could Shrink By 5%, Says Hungarian Finance Minister
The economy picked up slightly in June, but GDP may still decline by 10% year-on-year in the second quarter and shrink by 5% in the second half of the year, exceeding the previously expected, now optimistic 3% forecast, Minister of Finance Mihály Varga told Kossuth Rádió last week.

Varga said that the biggest annual decline was measured in April, when the decrease was 20%.

The economic slowdown diminished in May, as the trend reversed at the end of the month, and there were already signs of a slight recovery in June.

The minister added that this year, a general government deficit of 1%, HUF 488 billion, had originally been projected as a share of GDP, but by the end of the first half of the year, with a wide-ranging economic protection plan and stimulus package in place, a deficit of 3.8-4%, more than HUF 1.8 trillion, had already developed.

MTI Photo: Márton Mónus

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Budapest Business Journal

Hungary's largest and oldest source of business and financial news in English. Since 1992 it has presented essential information on Hungarian business life, including international analyses about the country. These days the BBJ newspaper is published every other week, while it releases daily business news online including premium paid content.

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