Euler Hermes expects recession and inflation in Hungary

Analyzing the economic impact of the coronavirus pandemic, Euler Hermes downgraded 126 sectors in 47 countries. The credit insurer expects a worse scenario and an even worse scenario depending on the length of the pandemic, as in both cases world trade is expected to fall sharply and the number of corporate insolvencies to increase.

In Hungary, Euler Hermes forecasts a -2.7 percent economic recession this year and increasing inflationary pressures from the second half of the year, and at the same time downgraded the risk outlook for the Hungarian automotive and supplier sectors. The good news, however, is that Hungary was in a much better state of shock than in 2008-2009, so there is much more room for maneuver for government mitigation interventions.