Equilor: Hungarian Economy May Grow Faster in 2026

The Hungarian economy may accelerate next year, with GDP growing by 2.8% according to the latest analysis presented by Equilor Investment Ltd. at a press conference on Thursday.

Senior analyst Zoltán Varga said that the Hungarian outlook is most affected by the weakness of the German economy and the global uncertainty caused by the trade war. The ECB's interest rate cutting cycle may have come to an end, political risks are exacerbating the eurozone's GDP growth difficulties, and weak European GDP growth may be stimulated next year by domestic demand and German investments. He added that the war in Ukraine continues to hold back investments.

In Hungary, household consumption growth is likely to continue in the coming quarters, supported by rising real wages and government programs, he said. Inflation may return to the central bank's tolerance range in the first quarter of 2026, with the indicator falling to an average of 3.7% next year.

Regarding the EUR-HUF exchange rate, he said that the persistently high base rate supports the strengthening of the Hungarian currency, theforint. Fundamentally, the forint is currently considered overvalued, he added, indicating that the forint may continue to strengthen in the short term.

According to senior analyst Péter Aradványi, the Trump effect is easing on the US stock market, with market records falling one after another. Significant growth can be seen in sectors related to artificial intelligence, while healthcare, energy, and consumer goods markets have lagged behind the index's performance. In the current situation, Equilor analysts see favorable investment opportunities primarily in the US utilities, healthcare and financial sectors.