Hungary will cut spending by around EUR 2 billion next year as the government expects economic expansion to slow in 2022. The Cabinet of Prime Minister Viktor Orbán, facing a closely fought general election next spring, is balancing between generous financial handouts to voters and a commitment to keep the budget deficit in check. The […]
In October 2021, the volume of exports was 10% and that of imports 5.6% smaller than in the same period of the previous year. Compared to October 2019, the volume of external trade declined by 6.1% in exports and by 5.0% in imports. The deficit was EUR 302 million, the balance deteriorating by EUR 1.2 billion compared to a year earlier. […]
The stock index of the Budapest Stock Exchange (BSE) fell this week, closing at 50,887.3 points on Friday, 189.31 points or 0.37% lower than a week ago, the state news agency MTI reports. Turnover on the stock market was HUF 60.85 billion, up from HUF 42.87 billion last week, with leading shares performing mixed. In […]
The National Bank of Hungary ended its quantitative easing program as policy makers vowed to pursue a “long” tightening cycle to combat soaring inflation. Hungary’s central bank brought its program of corporate and government bond purchases to an end as policy makers seek to tighten monetary conditions in the face of rampant inflation. Nevertheless, the […]
Hungary’s November government deficit broke an all-time record, boosted by a government spending spree to win re-election next spring. Economists fear that the upcoming general election will put the much-needed fiscal consolidation on hold. Hungary recorded an unprecedented monthly budget shortfall of HUF 1,009 billion in November, according to preliminary information published by the Ministry […]
Consumer prices were 7.4% higher on average in November 2021 than a year earlier. The last time the inflation was as high was in December 2007. The highest price rises over the last 12 months were measured for motor fuels as well as alcoholic beverages and tobacco. In one month, consumer prices increased by 0.7% on average, […]
Activity on Hungary’s credit market showed a general slowdown in October, even though bank lending rates only started to rise sharply in November. Given the rather aggressive monetary tightening pursued by the National Bank of Hungary, the coming months could bring an even more accentuated slowdown in lending. Activity on the Hungarian retail credit market […]
In September 2021, the volume of exports became 9.1% and that of imports 0.4% smaller compared to the same period of the previous year. Compared to September 2019, the volume of external trade increased by 0.7% in exports and by 4.7% in imports. The deficit was EUR 128 million, the balance deteriorating by EUR 1.3 billion compared to a year earlier. […]
Record weak forint puts Hungarian central bank in tight spotThe Hungarian forint weakened to a record level against the euro this week and Hungarian government bond yields jumped amid a souring of international market sentiment and a surge in COVID-19 cases. The central bank raised the interest rate on its one-week deposit facility in an […]
Despite the National Bank of Hungary (MNB) raising the policy rate by a total of 70 basis points in two steps last week, the Hungarian forint (HUF) fell to a new historic low against the common European currency (EUR) on Monday morning. In one day, the euro exchange rate broke through the psychological barrier of […]
Faced with surging inflation and a weakening currency, Hungary’s monetary policy maker took decisive steps this week. The central bank raised the one-week deposit rate by 70 basis points after hiking the benchmark interest rate hike 2 two days earlier. The Hungarian National Bank (MNB) raised the benchmark interest rate by 30 basis points to […]
The faster-than-expected increase in Hungarian consumer prices has taken the market by surprise and is prompting analysts to revise their inflation projections upward. Many believe that the nation’s central bank will be forced to tighten monetary conditions more aggressively than planned to tamper inflationary pressures in the economy. Hungarian consumer prices jumped 6.5% year on […]
Consumer prices were 6.5% higher on average in October 2021 than a year earlier. Significant price rises were measured over the last 12 months for motor fuels as well as alcoholic beverages and tobacco. In one month, consumer prices increased by 1.1% on average, the Central Statistical Office reports. In 12 months, compared to October 2020: Food […]
The stock index (BUX) of the Budapest Stock Exchange (BSE) rose on the week, closing at 55,099.88 points on Friday, up 1.66% on a week ago, or 902.17 points. Turnover on the stock market was HUF 52.6 billion, up from HUF 48.5 billion last week, with leading shares gaining. In its weekly summary sent to […]
The Hungarian economy is likely to recover from the shock of the coronavirus epidemic at a much faster pace than previously expected, according to a biannual report by the European Bank for Reconstruction and Development (EBRD). The organization raised its forecast for Hungary’s GDP growth this year to nearly 8%, which is in line with […]
