Hungary Economic Outlook
May 8, 2018Fueled by buoyant domestic demand, strong momentum from the final quarter of 2017 likely carried over into this year. Soaring retail sales in the first three months of 2018 point to strong consumer spending, underpinned by extremely tight labor market conditions, robustly rising wages and improved consumer confidence. Moreover, public budget data for Q1 hints at a solid expansion in fixed investment, as pre-financing for EU-funded projects increased notably. Budget data also revealed that revenue from income tax and VAT jumped, another testimony to the economy’s good health. That said, above-potential growth could be leading to increased capacity bottlenecks. In the political arena, Prime Minister Viktor Orbán announced some reshuffling of his government after his landslide victory in April’s elections. However, the continuity of economic policy seems to be guaranteed by the confirmation of the current economy minister, Mihály Varga.
Hungary Economic GrowthGrowth should remain vigorous but moderate somewhat in the second half of this year, held back by growing capacity constraints. Further inflows of EU funds and favorable financing conditions will spur fixed investment, while a strong labor market and robust wage growth is expected to buttress household spending. A buoyant domestic economy will, however, lead to some deterioration in the external balance, despite healthy external demand. Met the why particular panelists see the economy expanding 3.7% in 2018, unchanged from last month´s forecast. For 2019, the panel sees growth slowing to 3.1%.
Hungary Economy Data
5 years of Hungary economic forecasts for more than 30 economic indicators.
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|Bond Yield||3.14||0.0 %||May 18|
|Exchange Rate||269.6||-0.68 %||May 21|
|Stock Market||36,771||0.04 %||May 18|
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Hungary Economic News
May 22, 2018
At its latest monthly monetary policy meeting held on 22 May, the Monetary Council of the Hungarian National Bank (MNB) decided to keep the base rate at its current record low of 0.90%, while also maintaining all other monetary policy instruments unchanged.
May 15, 2018
The Hungarian economy continued to expand robustly in the first quarter.
May 14, 2018
According to preliminary data released by the Hungarian Central Statistical Office (KSH) on 14 May, industrial output rose a working-day adjusted 1.9% year-on-year in March, coming in well below the 4.1% increase recorded in February. March’s softer output was driven by moderations in the manufacturing and mining sectors.
May 9, 2018
Consumer prices jumped 0.7% month-on-month in April, coming in well above the 0.1% increase observed in March.
May 9, 2018
According to preliminary data released by the Hungarian Central Statistical Office (KSH) on 8 May, industrial output rose a working-day adjusted 1.9% year-on-year in March, coming in well below the 4.1% increase observed in February. In month-on-month seasonally- and working-day adjusted terms, industrial production contracted 0.7%, contrasting the 0.6% increase in February. Lastly, annual average growth in industrial production moderated further from February’s 5.7% to 5.0% in March.