Orbán Now Faces Serious Economic Issues
- 5 Apr 2022 7:33 AM
- Hungary Around the Clock
The new, fifth Orbán government will face serious economic challenges, as inflation must be kept in check, the forint exchange rate must be stabilised and fiscal risks must be managed, Portfolio observes, listing the most significant potential problems.
The Russian-Ukrainian war will accelerate inflation and slow growth. The government must support sanctions against Russia without endangering the country’s energy supply. In addition, hundreds of thousands of Ukrainian refugees have to be cared for.
Due to the slower growth, the economy will in effect stagnate from the second quarter on.
Soaring energy prices call into question the suppressed household energy prices, as financing these will cost more and more.
For this and other reasons, the 2022 budget will have to be adjusted, Portfolio adds.
In addition, the money withheld from the EU’s pandemic recovery fund are still an unresolved issue.
Portfolio also points out that the moratorium on interest repayments is still on and its future is uncertain, adding that the future of other price freezes on petrol and foodstuffs must also to be addressed.
Soaring food prices will create a serious problem, as well, the website warns.
MTI Photo: Tamás Vasvári
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