New Restrictions In Hungary To Hurt Business Growth Target
- 9 Mar 2021 12:00 PM
- Hungary Around the Clock
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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