New Restrictions In Hungary To Hurt Business Growth Target

  • 9 Mar 2021 12:00 PM
  • Hungary Around the Clock
New Restrictions In Hungary To Hurt Business Growth Target
Lockdown measures announced on Thursday may endanger the government’s growth target for 2021, Világgazdaság writes, citing analysts.

GDP growth could have been 5.5% this year, but with restrictions extending beyond two weeks, the 5% target is in danger, said Erste Bank senior analyst Orsolya Nyeste.

The official growth target is 5-5.5% for 2021, but the government is expected to update its planned economic trajectory in the convergence programme on April. 1.

January retail sales came in below forecast and the two-week shutdown of stores could further hurt the sector, ING Bank analyst Péter Virovácz observed.

The closures will inevitably lead to a quarterly drop in GDP in the first three months, he added.

He surmised that the economy could stage a sharp rebound in the summer and reach pre-crisis levels at the end of 2021 or the beginning of 2022. Overall, ING expects 3-4% GDP growth this year.

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