Magyar Bankholding: Economic performance may start to increase this year

By: Trademagazin Date: 2023. 01. 25. 12:37

By the end of 2023, inflation may be in the single digits, the annual average is expected to be around 17.5 percent, according to Magyar Bankholding’s recent macroeconomic analysis.

The banking group’s analysts reduced their GDP growth forecast for 2022 from 5.3 percent to 4.8 percent, but increased this year’s from 0.4 percent to 0.8 percent. Due to the slight decline in domestic demand and the continued growth of exports, the current account deficit may decrease to 5.8 billion euros, or 2.9 percent of GDP, this year. Volatility caused by macroeconomic and geopolitical factors has dominated the business environment in recent times, testing market players in ways previously unimaginable. In such circumstances, not only growth, but also inflation, public finances, and foreign trade forecasts carry more uncertainty.