Fitch Ratings gives a devastating outlook for Hungary’s economy: low GDP growth, high inflation

Fitch Ratings has affirmed Hungary’s sovereign rating with a stable outlook, the National Economy Ministry told MTI late Friday. However, the American credit rating agency gave a gloomy outlook for the Hungarian economy’s GDP growth and the expected inflation rate, contrary to the Orbán cabinet’s figures.

All three big rating agencies put Hungary in the investment grade category, the ministry said. According to hvg.hu, despite the Hungarian government’s 3.1% GDP growth expectation, Fitch Ratings wrote only about 0.7% for 2025 and the Hungarian economy may start growing more significantly only in 2026. Furthermore, the American agency added that inflation in Hungary would be around 4.6% in 2025 and 2026, well above the government’s 3% target.

Here’s the ministry’s reaction: war, sanctions, uncertainties

The ministry faulted decision-makers in Brussels for adopting a failed economic policy, supporting the war instead of peace, and giving all available funding to Ukraine, while the European economy faces growing challenges. The government is working to shield Hungarians from the negative external environment and strengthen the economy, allocating resources to support families and SMEs, it added.

In spite of pressure from Brussels, the government is implementing Europe’s biggest family-friendly tax cut programme, while taking firm steps against unjustified price increases, the ministry said.