Hungarian economist: this is why the forint will continue to weaken
Change language:
Viktor Zsiday, a well-known Hungarian economist, wrote on his website about why he thinks the Hungarian forint will continue to weaken. He believes if the government maintains utility price cuts, even worse could come than the weak forint. Below you can read a summary of his article.
According to zsiday.hu, the Hungarian economy needs modification, but those will not be communicated as government restrictions. In a sarcastic post, he says that the government will introduce a “special economic operation” like Russia carries out a special military operation, according to what Putin says.
Zsiday also says that regarding the new measures, people should focus on 2023, not 2022.
The government calculated a 4 pc budget deficit for 2023. However, that is not viable. First, the loss of the National Bank of Hungary will be more than 1 pc of the GDP in 2022. Secondly, the increase of the Hungarian economy will probably be slower because of the war. Therefore, the budget deficit will be around 5.5-6.5 pc. Additionally, nobody can calculate the loss generated by the utility price cuts. But there will be significant losses if the energy prices remain high, he wrote.
21st century – applications that continue to be APPLIED – to anaylsis – the performance of a Country – its Financial & Economic presently – into the short and immediate term – then long term, the trend of the Hungarian Economy for the past 18 months – has indicated, Strongly – an Economy, that is in a SERIOUS downward Pressure position.
Fidesz / Victor Orban – the prime excuse can’t be passed off to a Novel Virus nor the Russian War staged against the Ukraine – for the downward trending of the Hungarian Economy.
Hungary – go back 4 years under this Government, when our relationship with the European Union – was on a “False” smile platform, the CORE direction – economically & financially – that the Fidesz / Victor Orban – Government led party – had coursed or set Hungary on, was of serious un-certainties – in particular – the long term RAMIFICATIONS or impact on Hungary.
REMEMBER – those who at the recently held National Elections – who voted for a return to Government, the Fidesz / Victor Orban led Government of Hungary – you by your vote take Ownership & Responsibility – if as it growingly APPEARS – the humongous pressures – that are on the Economic & Financial postion of Hungary.
WHO pays – for a situation – that the Big Picture – those who FULLY understand Economics – that look and study – the Massive European & Global Picture – that is a Pressure Cooker – that is PLASTIC or Volitile – fighting to find up-ward Economic & Financial stability in Trending – who pays – when Governments – are placed in this postion, as in FACT – the present Fidesz / Victor Orban led Government of Hungary are ???
Answer – first and formost – the Citizens – through taxes.
Hungary – nothing is Getting cheaper, and the Fuel Cap – its ceasing is sooner than later plus Inflation continues to Rise.
The economic & financial componentry – ALL indicators respected – TREND downward – to harder Deeper, Challenging times in Hungary.
Kleptocracy means it would be bad form to tax pro-government business persons considerate to politicians’ needs, right?