EBRD: Hungary’s economy to shrink this year

The Hungarian economy is likely to shrink by 0.2% this year, the European Bank for Reconstruction and Development (EBRD) has forecast.

“Weak external demand, tight financing conditions and delayed disbursement of EU funds, will likely result in a … contraction of GDP in 2023, notwithstanding various government stimuli programmes,” the EBRD said in its latest Regional Economic Prospects.

In its May forecast, the EBRD predicted growth of 0.4%.

Hungary’s economy shrank by 1.7% year on year in the first half, according to the Central Statistics Office (KSH).

In 2024, growth of 2.8% is expected on the back of recovering domestic demand, the EBRD said.

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