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Why Have Growth Forecasts Been Slashed by National Bank in Hungary for This Year, & 2025?

• 26 Sep 2024 6:14 AM
• Hungary Around the Clock

The MNB expects Hungary’s economy to grow by just 1-1.8% this year, a sharp revision from the 2-3% forecast made three months ago, according to preliminary data from the quarterly inflation report to be released.

The revision aligns with the consensus as analysts have also reduced their growth forecasts for Hungary in recent months.

The Finance Ministry predicts a 1.8-2.2% rise in GDP, while the Economy Ministry expects 2.2-2.3% growth, Portfolio writes.

The central bank also cut next year’s growth outlook from 3.5-4.5% to 2.7-3.7% but raised its forecast for 2026 by 0.5 percentage points to 3.5-4.5%.

The MNB now sees 2024 inflation decelerating to the 3.5-3.9% range, compared to the 3.5-4.5% target in the June report.

Inflation is expected to remain within the central bank’s 2-4% target range in 2025 and 2026.

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