Struggling German carmaking industry may ruin PM Orbán’s economic dreams and election chances – UPDATED
The German carmaking industry is struggling, and that has a devastating effect on Hungary’s economy because, despite all of Orbán’s “freedom fights” against the EU and his developing ties with China and other Eastern powers, the Hungarian economy’s key partners are Western states, especially Germany and the German car manufacturing industry.
- you can read this article in German here: Die schwächelnde deutsche Autoindustrie könnte Orbáns wirtschaftliche Träume und Wahlchancen zunichtemachen
German carmaking industry struggling
According to G7, Hungary’s GDP contracted by 0.7% in Q3 of 2024, meaning our country is in a technical recession. The Hungarian economy-focused media outlet found the reason in Hungary’s agriculture, industry and construction sectors. Their contribution to the GDP fall reached 2% this year.
According to Péter Virovácz, a senior analyst of ING Bank, the Hungarian agriculture sector’s 2023 base was very high, and the weather was catastrophic this year. The Hungarian industry and carmaking sector struggle because of Germany.
The new Audi CUPRA Terramar in Győr. Photo: Facebook/Joó István
0.5% GDP growth for 2024 could be already a miracle
Mr Virovácz augurs a 1% GDP growth for 2024 in Hungary. Bence Stubnya, a journalist for G7, said the GDP increase will not reach 0.5% this year. The government said this year’s GDP growth would be 4%. Now, their prognosis is about 1.5%.
ING Bank‘s 2025 prognosis concerning Hungary’s GDP growth fell below 3%, while the Orbán cabinet talks about 3-6%. On 18 October, PM Orbán said everybody would be surprised when they see the Q1 GDP increase next year.
Without significant economic improvement, PM Orbán will be in trouble in the 2026 elections because Péter Magyar and his Tisza Party outpaced Fidesz in recent polls. Orbán’s Fidesz has been leading the polls since 2006 and has been governing the country since 2010.
Photo: MTI
UPDATE: Eurozone develops, Hungary falls behind
The euro area economy expanded by 0.4% quarter-on-quarter in July-September, Eurostat revealed Wednesday. Third-quarter growth was at 0.9% on a yearly basis, slightly above market expectations of 0.8%, the statistical authority announced. Economic growth projections for the eurozone also underestimated quarterly growth, which was 0.2%. On the EU side, the GDP growth rate was 0.3% for the third quarter on a quarterly basis and 0.9% for a yearly basis, the Turkish Anadolu news agency wrote.
Among member states, Ireland recorded the highest increase with 2% compared to the previous quarter, followed by Lithuania’s 1.1% and Spain’s 0.8%. Declines were recorded in
Hungary (minus 0.7%), Latvia (minus 0.4%) and Sweden (minus 0.1%).
Number of jobseekers continues to fall
The number of jobseekers in Hungary stood at 226,219 in October, 2,000 fewer than in the previous month, the state secretary for employment policy said on Thursday, citing data from the National Employment Service (NFSZ).
The October figure was the lowest for the month in more than three decades, Sándor Czomba said.
The number of people seeking work for longer than a year has fallen 4pc over a year, while around 20,000 Hungarians have found work with the support of programmes for under- and over-30s, he added.
The government aims to boost the employment rate to 85pc and tap the 300,000-strong labour market reserve, he said.
Read also:
- National economy minister: Hungary’s growth hindered by external factors, especially automotive decline
- No stopping: Hungarian forint hits another record low after weak GDP report
Featured image: despositphotos.com
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7 Comments
The Real Person!
The Real Person!
The LAYERS mount – in the DOWNFALL of this Orban led – Fidesz Government of Hungary.
Orban – the Fidesz Government, have FAILED dismally, that have inflicted growing DAMAGE to the Economy of Hungary, through, in Legal contractual arrangements, a lack of diligence on there behalf, under what is know as a “Get Out” clause.
Globally, it is known, that Germany through Economics are making MASSIVE changes in the landscape of there Automotive – Car Making Industry.
China, being Germanys LARGEST export market for there Automotive Industry, through lack of GROWTH – GDP, continues to HURT, the German Automotive Industry.
Germany – has accelerated its RELATIONSHIP with India, and see’s India, as a somewhat “un-tapped” market – with POSITIVE up-side – that could or SHOULD result in GROWTH in the German Automotive Landscape.
India, just not its population which continues to GROW, but the increase into of its population “graded” Middle Class is HAPPENING.
Disposable income, betterment of life-style, quality of life, is FACTUALLY happening in India.
Hungary – though investments have been made into Hungary by the German Automotive Industry, is “Small Change” in the BIG picture of Germany and its Automotive Industry.
Germany, a “Power House” in Europe, a “Power House” in the European Union – owes Hungary – the Orban led Fidesz Government of Hungary – NOTHING.
Orban – the Fidesz Government there growing relationships and partnerships with China – the distillation of DEMOCRACY in Hungary pursued by Victor Mihaly. Orban – would be watched STRONGLY by Germany – in the area category of the Automotive Industry.
Germany, would be viewing the WEAKNESS growing downside of the Hungarian Economy, its WEAK currency and growing citizen un-rest – in the Political arena of Hungary, that will WORSEN.
Germany – owes NO favours to Hungary, and the re-shape of the German Automotive Industry, it is HIGHLY likely to have HUMONGOUS effects – IMPACT – that will send the Hungarian Economic & Financial “quicksand” position DEEPER into CHAOS.
The Real Person!
The Real Person!
Ronald Reagan asked the classic question that all Hungarians will need to ask themselves in 2026 which is “Are you better off than you were four years ago”. Jimmy Carter lost that election.
The Real Person!
The Real Person!
Isn’t Germany the largest member of the EU that has been clueless since I moved here 10 years ago.. there was a reason for brexit that was 1/3 of the EU. The powers that be in the UK decided to ignore the reason for brexit and is even nuttier than the EU. Germany is responsible for its problems the affects every member of the EU. Imajine 20 year old Tesla is the largest car company by a factor of 2 and spaceX tge most sophisticated space program on the planet and at a fraction of the cost of NASA. It has refused all the left wing social programs the goverment has tried to impose- it too is only 20 years.
The EU is now trying to silence X Twitter with Hugh daily fines. I lost count of how many US companies have been fined by the EU. Europe has double the pop of the US but are now concerned about global warming and LGBT issues- nobody cares just leave the children alone. Stop supporting wing issues from the US and UK- use your brain unlike the bat flu wet market you sucked up. I suggest you do some research and go after those that pushed on the world- fine them- they have made billions
The Real Person!
The Real Person!
Car manufacturing has slowed down. There are alternatives. An article on Microsoft Outlook said that Uaviator, a Hungarian company invented a new drone. This drone is undetectable, so far seems to be the very best in the world. Hungarian scientists are equal to Elon Musk; Hungarian teachers and parents can take credit. Descendents of Attila the Hun are extremely talented. Hungary could play a greater part in weapons manufacturing and employ people from the car manufacturing companies.
The Real Person!
The Real Person!
The GDP of BRICS already outweighs the GDP of the G7, so no wonder the G7 are crying foul! They are jealous! Orban and his government are great tacticians and credit to them for positioning Hungary’s economy closer to that of BRICS! The G7 and the rest of the West are slowly going down the gurgler, while BRICS are rising and keep rising to great heights! Hungary’s place is in BRICS and not with the so-called “West”! Congratulations Mr Orban, you are certainly one of the most gifted and intelligent political leaders in the World today!
The Real Person!
The Real Person!
It’s not the Germany economy we need to be worried about, it’s the US’s. The Hungarian government will be the winner when Trump is elected with an increase in US trade.
Cheap energy runs a successful economy, something Hungary has been working toward for years. Germany, however, has committed economic suicide by eliminating its previous source of cheap atomic and Russian energy sources. Let’s see who has the last laugh in a few days.
The Real Person!
The Real Person!
Hungarian scientists are equal to Elon Musk! Fantastic post from Maria. Did they invent the telephone, electricity, etc? Did the Rubik’s cube change world history? Drones are going to save the Hungarian economy? Hungarian teachers are fantastic? Decendents of Attila the Hun are something special? There’s no way to respond to this post because it is completely nuts.