Orbán in trouble? IMF cuts Hungarian GDP forecast
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The International Monetary Fund (IMF) forecasts Hungary’s economy contracting by 0.3 percent this year.
Its latest World Economic Outlook released on Tuesday lowers its projection published in April from growth of 0.5 percent. Hungary’s gross domestic product shrank by 1.7 percent in the first half of the year, Central Statistics Office (KSH) data show. The government expects a turnaround in the third quarter. The IMF expects average annual inflation in Hungary to be 17.7 percent this year, while the current account is expected to show a deficit of 0.9 percent of GDP.
Hungary inflation falls to 12.2 pc in September
Consumer price inflation in Hungary was an annual 12.2 percent in September, the Central Statistical Office (KSH) said on Tuesday. Inflation fell for the eighth month in a row after peaking at 25.7 percent in January. Food prices rose by 15.2 percent in September, after a 19.5 percent increase in the previous month. Household energy prices fell by 14.6 percent. Gas prices were 33.5 percent lower and electricity prices declined by 3.2 percent. Prices in the category of goods that includes vehicle fuel rose by 19.9 percent. Motor fuel prices increased by 35.4 percent.
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Prices of spirits and tobacco products increased by 12.3 percent and clothing prices rose by 6.9 percent. Service prices increased by 13.6 percent, picking up from a 13.2 percent rise in the previous month. Core inflation, which excludes volatile fuel and food prices, was 13.1 percent. CPI calculated with a basket of goods and services used by pensioners was 11.6 percent. Month on month, consumer prices edged up 0.4 percent.
Drivers of Inflation: Hungary (February 2023)
https://www.imf.org/en/Publications/selected-issues-papers/Issues/2023/02/27/Drivers-of-Inflation-Hungary-530224
Some choice words re the causes, and contrary to the Politicians (who always know better and are never accountable), they are not blaming the Central Bank.
As I wrote a few days ago with respect to Fitch, I repeat regarding I.M.F. These charlatans are using their undue influence to crash entire economies and bring down governments. They make fanciful, arbitrary forecasts to serve the purpose of encouraging or spooking investors, who then act according to those forecasts and either prop up or screw up an economy. They are a law unto themselves, a very dangerous law. They need to have their wings clipped, bigly.