Hungarian consumer prices rose the most since 1998 on the back of soaring food costs. Analysts believe that inflation may exceed 20% as energy subsidies fade the war in Ukraine continues unabated. Hungarian inflation accelerated at the fastest pace in almost a quarter century in July, taking a heavy toll on household’s purchasing power and […]
Skyrocketing consumer prices, the looming energy crisis and the aggressive tightening of monetary conditions point in the direction of Hungary entering recession, according to economists. The country’s GDP growth will remain feeble next year as well. Hungary’s economy faces multiple risks of which some are triggered by international developments while others relate to domestic issues. […]
Hungary’s Foreign Minister Péter Szijjártó travelled to Moscow to negotiate more gas imports from Russia as Hungary braces for a tumultuous winter heating season. Hungary has been a vocal critic on the European Union’s embargo on Russian energy sources, saying a swift decoupling from Russian energy would undermine the country’s economy. Hungary’s foreign minister arrived […]
The Hungarian government declared an “energy emergency,” citing the war in Ukraine and sanctions on Russia by the European Union as the primary reasons. Under the new system, there will be a ban on the export of fossil fuels and the system of government-imposed cap on household utility prices will be revamped. The government of […]
The Hungarian forint has been one of the weakest performing currencies worldwide amid an international selloff. Despite government reassurances that the fundamentals of the Hungarian economy are strong and sound, the forint remain under massive pressure. Diplomacy&Trade takes a look at the specific reasons behind the forint’s underperformance and how the currency’s weakness threatens the […]
The National Bank of Hungary delivered the biggest rate cut since 2008, surprising the markets with the size of the move. The monetary decision came after the forint weakened to levels never seen before. The Hungarian central bank raised the base interest rate by 185 basis points to 7.75% this week and policy makers aligned […]
Hungary’s finance minister vetoed an EU directive on a global minimum corporate tax, leaving the outgoing French EU Presidency without its crown achievement. The move is seen as yet another front in Hungary’s standoff with the bloc. Hungarian Finance Minister Mihály Varga blocked a European Union initiative to implement a global minimum corporate tax rate […]
The National Bank of Hungary surprised markets when it unexpectedly raised the key interest rate as monetary policy setters seek to put a floor under the sliding forint. In the face of double-digit inflation and massive wage increases, the central bank has to keep raising borrowing costs to keep Hungarian financial assets competitive. The National […]
Despite significant costs, achieving the climate target of zero emissions by 2050 may prove a competitive advantage for Hungary, according to a recent study by McKinsey. The analysis outlines a path that will have a clear positive impact not only on climate protection objectives, but also on economic growth, job creation, energy independence and Hungary's […]
Hungarian Prime Minister Viktor Orbán was granted a near-total exemption from the European Union’s embargo on Russian oil. Although the premier hails it as a great victory achieved in Brussels, the exemption may only deepen the rift between the bloc and Hungary. EU leaders agreed this week to grant Hungary a near-total exemption from a […]
Hungary’s decision to levy extraordinary sectoral taxes is not the first time that Prime Minister Viktor Orbán resorts to unorthodox economic measures to prop up the budget. The announcement on Thursday triggered a selling wave on local financial markets, suggesting that investors are alarmed by the country’s return to economic unorthodoxy. Hungary will impose USD […]
Hungary’s incoming government faces some of the biggest economic challenges of the last decade as rampant energy prices may force it to abandon state-imposed price caps, while global disruptions are denting prospects for growth. The new Orbán government may again deploy unorthodox economic measures to guard fiscal stability and prop up the economic outlook. Prime […]
Hungary is opposing the European Union’s proposal for a gradual ban on Russian oil imports, with Budapest claiming the plan would be equivalent to dropping an A-bomb on the country’s economy. Meanwhile, tensions are on the rise within the bloc as a handful of dissenting member states are holding up action on a new package […]
The war in Ukraine has brought to the forefront one of Europe’s most pressing vulnerabilities: its reliance on Russian energy. Although European leaders have shown great resolve in their initial response to the war in Ukraine, the solution of weaning the continent off Russian energy dependence is not immediately clear or painless. A similarly pressing […]
Sándor Csányi, chairman of Hungary’s largest commercial bank OTP, warned that the Hungary needs a budget adjustment of up to HUF 1,700 billion. The war in the Ukraine, international energy prices and the outcome of Hungary’s standoff with the European Union will decide the exact extent and nature of the budget adjustment, according to Csányi. […]
