Magyar Bankholding: A positive turn in the economy is expected from the second quarter of the year

By: Trademagazin Date: 2023. 04. 18. 10:54

A positive turn can be expected from the second quarter of 2023: the Hungarian economy may once again be on the path to growth, consumption may gradually improve, and inflation may begin to decline permanently. Magyar Bankholding’s macroeconomic analysts revised their annual GDP growth expectations upward, while according to their calculations, inflation could be in the single digits by the end of 2023. The tightness of the labor market may loosen this year. The forint exchange rate will most likely remain at a level close to the current one.

Magyar Bankholding’s macroeconomic analysts regularly assess the processes of the domestic and international economy and provide forecasts for the period ahead. In April, they evaluated the first quarter of 2023 and gave an outlook on the months ahead.

The outlook for the Hungarian economy this year is significantly improved by the pending acute energy crisis, the adaptability of European economies, the continued decline in energy prices, and the resilience of many sectors.

“Accordingly, we are slightly modifying this year’s growth forecast from 0.8 percent to 1 percent. In the coming years, growth may accelerate again, which will be supported by new industrial capacities in addition to recovery, the latter may be especially powerful in 2025, as many significant manufacturing developments are planned to be put into operation”

– said Gergely Suppan, senior analyst at Magyar Bankholding.