EU forecast: Hungary’s economic growth will remain strong in 2022

By: Trademagazin editor Date: 2021. 11. 12. 11:56

Hungary’s economic growth will remain strong at 5.4 percent in 2022 thanks to fiscal stimulus measures, but is expected to slow to 3.2 percent in 2023 as policy support gradually declines, the European Commission said in its autumn interim economic forecast.

European Commission expects more than 5 percent growth from Hungary next year

According to EU experts, annual GDP will grow by 7.4 percent this year, while a summer forecast released by the panel in July indicated growth of just 6.3 percent.

Experts also noted that rising production costs will continue to keep inflation high. The harmonized index of consumer prices will peak at 6.7 percent in the fourth quarter of 2021 due to price rises following the reopening of the economy, rising global commodity and commodity prices. Price regulation of residential energy will partially protect households from rising commodity prices, they added. After an average inflation rate of 5.1 percent in 2021, the European Commission forecasts inflation of 4.8 percent in 2022 and 3.4 percent in 2023. (MTI)