Quick Analysis: Why EBRD Sees Economy Growing in Hungary this Year & Next
- 27 Feb 2026 10:11 AM
The European Bank for Reconstruction and Development (EBRD) forecasts Hungary's GDP will grow by 2.0pc in 2026 and 2.5pc in 2027 in its latest Regional Economic Prospects report released.
The EBRD left its growth forecast for 2026 unchanged from its previous report published in September.
The EBRD noted that industrial activity in 2025 remained subdued while household consumption expanded on the back of rising real wages and government income support measures. Fixed investment is estimated to have contracted sharply, weighed down by elevated financing costs, policy uncertainty and the continued freeze on EU recovery funds.
This year the EBRD expects a pre-election fiscal package will support household spending but add to fiscal pressures.
Investment is expected to rebound gradually as external demand improves and new automotive and battery manufacturing capacity comes online including a EUR 7.3bn battery gigafactory near Debrecen, which is set to begin production in early 2026.
Risks are tilted to the downside, linked to external demand weakness and prolonged uncertainty over EU funding.
Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.
Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.
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