Hungary economic output forecast to shrink by 4.7 pc in 2020

Hungary’s economic output is forecast to shrink by 4.7 percent this year, according to Takarekbank analyst Gergely Suppán. Earlier, Takarékbank forcast a 3.2 percent contraction.

At the same time, output next year is likely to grow by 7.2 percent, Suppán said on Tuesday.

Although much uncertainty surrounds the second wave of the coronavirus pandemic, it appears that the Hungarian economy was most severely buffetted by the virus in the second quarter, he added.

It is expected that all sectors of the economy will contribute to growth, Suppán said, adding that the severity of restrictive measures seen in the spring was unlikely to be repeated.

By the second half of next year economic output will have likely rebounded to pre-pandemic levels, he added.

Inflation is expected to average 3.5 percent this year before easing in the early months of 2021, possibly averaging 3.7 percent in 2021, Suppán said.

• Hungary’s economic protection among most successful in terms of job market, says official

Read alsoHome construction VAT to revert to 5 pc in Hungary

Source: MTI