Hungary’s economic growth slowed to a crawl at the end of 2025, with fourth-quarter GDP expanding just 0.2% quarter-on-quarter. This tepid finish dragged full-year growth down to approximately 0.4%, well below initial projections and even weaker than Hungary’s 2024 performance. Despite ramped-up government spending late in the year, the stimulus failed to meaningfully boost overall […]
Europe stands at a critical juncture. With geopolitical tensions rising, technology races accelerating, and global competitors surging ahead, the continent can no longer rely on past strengths alone. But, according to McKinsey’s latest analysis, this moment also presents a unique opportunity for renewal if bold action is taken now. Despite ongoing efforts to reform and […]
Hungary is limping toward next year’s general election with growth stuck near zero, fragile confidence, and a worsening inflation outlook. Industry weakness, labor-cost pressures, and election-year fiscal constraints leave little room for policy error, and few signs, yet, of a self-sustaining recovery. Third-quarter GDP posted no quarter-on-quarter growth, a negative surprise that “keeps the economy […]
Hungary narrowly avoided slipping into recession in the second quarter of 2025, but fresh economic data and a downgraded growth forecast point to mounting challenges for Prime Minister Viktor Orbán ahead of next year’s general election. Gross domestic product rose by 0.4% in the April–June period, following a revised 0.1% contraction in the first quarter, […]
Hungary's economy unexpectedly shrank in the first quarter as industrial weakness offset service sector gains, highlighting vulnerabilities in the export-dependent nation. Gross domestic product fell 0.2% from the previous quarter and remained flat year-on-year, the Budapest-based statistics office reported. The figures fell short of economists' expectations, with Bloomberg's survey having projected 0.4% growth for both […]
Hungary's Budget Deficit Nears Annual Target Amid Economic ConcernsHungary's budget deficit has surged to 62% of the government's full-year target in the first quarter, following a significant shortfall in March—the second-largest for that month in 24 years. This development raises questions about the feasibility of the administration's revised economic growth projections, especially as the National […]
Hungary’s economic recovery is faltering as industrial output plunged and retail sales stagnated, raising concerns over the country’s ability to rebound from recession. The forint weakened against the euro, adding further pressure to the fragile recovery. Industrial production fell by a workday-adjusted 6.4% in December compared to a year earlier, driven by a downturn in […]
Hungary’s economy is showing tentative signs of recovery after stagnating through much of 2024, weighed down by sluggish demand from key eurozone trading partners. Yet, the broader outlook remains lackluster. Fresh data released by the country’s statistical office this week revealed that gross domestic product (GDP) grew by 0.5% in the fourth quarter compared to […]
After Malta, Hungary has seen the highest growth in the number of new purely electric cars registered in the first nine months of this year, according to a post on the Ministry of Energy (EM)'s social media page. The Mediterranean island nation has reclaimed the top spot with 83.2%, while Hungary is again the silver […]
Hungary’s economic growth bubble burst in the second quarterHungary’s economy contracted in the second quarter, keeping the country’s GDP on a zig-zagging course. Despite continued government optimism on the growth outlook, some analysts are lowering their GDP forecast for the year. In the run-up to the release of second-quarter GDP, forecasts for the performance of […]
In the latest quarterly review, Hungary's economic performance fell short of analysts' projections, underscoring the challenges of a gradual recovery from a protracted recession that continues to pressure the nation's fiscal framework. According to data released by the Budapest-based statistics office this week, Hungary's Gross Domestic Product (GDP) increased by 1.1% on an annual basis […]
While third-quarter GDP data surprised on the upside, the underlying weaknesses of the Hungarian economy will mar the 2024 economic rebound, according to a report by BMI, a Fitch Solutions company. A challenging external environment and a tight fiscal position all point in the direction of suboptimal growth next year. In the third quarter of […]
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. […]
A hefty spending spree by the government ahead of April’s elections has left a significant hole in Hungary’s budget at a time when the war in Ukraine is putting further pressure on the country’s financials. With the budget deficit reaching nearly 75% of the annual target by the end of March, the new government will […]
Hungary’s economy is expected to make a strong comeback this year following the ravaging impact of the Covid pandemic. The International Monetary Fund and the European Bank for Reconstruction and Development are the latest to project that GDP growth is set to exceed earlier expectations. The International Monetary Fund (IMF) raised its forecast of Hungary’s […]
