• Coronavirus in Hungary
  • Budapest
  • Hungary border control
  • HelloMagyar
EnglishFrenchGermanSpanish
EnglishFrenchGermanSpanish
Hungary may suffer from Ukraine growth headwind, says CityHungary may suffer from Ukraine growth headwind, says CityHungary may suffer from Ukraine growth headwind, says CityHungary may suffer from Ukraine growth headwind, says City
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Breaking News
Support us
Daily News Daily News · 02/09/2014
· Business

Hungary may suffer from Ukraine growth headwind, says City

economy
Daily News Hungary

London, September 2 (MTI) – Hungary’s economy is set to struggle in the headwind stemming from the Ukraine crisis combined with a slowing eurozone, London-based emerging markets economists said today.

In its daily emerging markets report released to investors in London, BofA Merrill Lynch Global Research – the research unit of Bank of America-Merrill Lynch – said its forecast of 3 percent growth this year already assumes a sharp slowdown in the second half. Protracted tensions surrounding the Russia-Ukraine dispute may extend the negative drag into 2015, “shaving around 1 percentage point off our 3 percent growth estimate, due to lower exports and less investment”.

In such an event, inflation may not return to the 3 percent target by the end of 2015 as currently expected, but only in 2016, Bank of America-Merrill Lynch said.

However, the combination of the measures planned to ease the FX debt burden on households should help reduce the economic vulnerability of Hungary. Firstly, the NPL ratio should fall across sectors in the coming year, including among households where probably the ongoing legal dispute led some borrowers to stop servicing debt.

Secondly, the conversion of the FX loan stock will likely take place with the support of the National Bank. In the “boldest scenario” where all mortgage loans (approximately EUR 11bn) are converted in one go, FX reserves would fall temporarily to 24 billion euros, covering still 3.5 months of imports, down from 5 months currently.

However, “we note that this will likely be a dip, since EU funds should top up reserves again by 5-6 billion euros next year”, Bank of America-Merrill Lynch’s analysts said.

Source: http://mtva.hu/hu/hungary-matters

economy
Share
Daily News
Daily News

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.


Thank you!

You have successfully joined our subscriber list.


.

Latest news
  • Will TikTok be banned in the EU and Hungary?
  • Is media awareness growing in Hungary?
  • What happened today in Hungary? – 30 January, 2023
  • Boysen Group to create 400 new jobs in Hungary
  • Austrian Defence Minister Klaudia Tanner visits Hungary
  • This is why fuel in Hungary is the most expensive in the region
  • Medicine shortage can stay for a long time in Hungary
  • Hungarian tourism boomed in 2022, but where did most of the visitors come from?

About us

Contact us

Copyright rules

© 2023 DailyNewsHungary. All rights reserved! | Server and development by Svigelj Levente E.V