EBRD: Hungary' Economy to Grow 2% in 2026

The European Bank for Reconstruction and Development (EBRD) forecasts Hungary's GDP will grow by 2.0% in 2026 and 2.5% in 2027 in its latest Regional Economic Prospects report released on Thursday.

EBRD left its growth forecast for 2026 unchanged from its previous report published in September.

The Bank 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 7.3 billion 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.