Hungary expected to see the highest average annual inflation in the EU this year
The European Commission has published its latest Winter 2023 Economic Forecast. According to the report, all countries in the EU and the euro area now look set to avoid a technical recession, which was previously expected by early 2023.
The report was also given a detailed coverage by Telex. As they write, presenting the report, Commissioner for Economy Paolo Gentiloni highlighted that “in 2022, EU and euro area growth of 3.5 percent is higher than in the US and China.”
As for Hungary, as we have reported earlier, the Commission is projecting an average annual inflation rate of 16.4 percent for the country. By 2024, this is predicted to fall to 4 percent.
Hungary’s fiscal stimulus has come to an end
According to the EC document, Hungary’s economy contracted by 0.4 percent, possibly because much of the impact of the previous fiscal stimulus has worn off. In addition, the severe summer drought took a toll on the country’s economy. With both consumption and investment slowing, the report expects a further economic decline in the last quarter of 2022.
Economic activity is unlikely to improve this year, due to its gradual adaptation to high energy prices. In addition, consumer spending will continue to fall due to high inflation. The willingness to invest is also likely to drop due to high credit costs and more restrained government spending. The Hungarian property market is also expected to weaken, which will hold back construction projects.
Rising inflation in 2023
While inflation is expected to fall in most EU countries, in Hungary it may rise to 16.4 percent from the previous year’s 15.3 percent. Looking at the EU average, overall inflation is set to reach 5.6 percent. As reported by Telex, this means that the EC predicts an annual average inflation rate in Hungary in 2023 of more than 2.5 times higher than in the EU.
The abolition of official energy prices and the fuel cap has also contributed greatly to this high inflation. These measures could have pushed up the average inflation rate by almost four percent. The Commission also mentions the weakening of the forint and the surge in indirect taxes as other contributing factors.
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Source: DNH, telex.hu
2 Comments
Hungarians – what are WE doing about it?
WHAT orderly expression – a right given us under DEMOCRACY, if it still exists in our country Hungary – are we exercising to highlight our annoyance and displeasure?
NOTHING is across the board getting cheaper in Hungary.
Inflation – across the board in Hungary – a “mean” factual increase of near 42% over the past 18 months, what are WE doing about it?
The present Government – Victor Orban led Government of Hungary – can’t HIDE continuous that its a GLOBAL trend.
Break it down – and the factual explanation in Hungary is that the Orban Government have been incompetent.
They, as an elected Government by us – have Failed us – in there “Duty of Care” – to THINK us the citizens the population of Hungary – FIRST and uppermost.
The Orban led Government have FEED – driving the level of Inflation in Hungary – to what it is factually to-day and its ZENITH which still is to come.
WHAT are we DOING about it?
The forint continues to buy us LESS.
Blacker/Harder times we FACE in Hungary – taken here – these times and into the immediate FUTURE – maybe long term FUTURE – by this Orban led Government, that continues to “Bury” our country that we Retain – any form of a DEMOCRACY.
Inflation is a GLOBAL challenge, but what we are DEALING with in Hungary – extends outside reasoning GLOBALLY – the rate of Inflation that country’s are experiencing.
Governments – and History never Lies – are KNOWN – to be the FEEDERS into existing problems.
This is EXACTLY the role played out by Victor Orban and the present Government of Hungary – our INFLATION nightmare or Dilemma – Feeders.
Well the propaganda department will be swinging into action to tell us this was all fake news and our economy is doing the best, the usual blah blah blah