The European Bank for Reconstruction and Development (EBRD) forecasts annual economic growth for Hungary of 0.4% this year.
In its last Regional Economic Prospects released in February, the EBRD saw GDP dropping by 0.2%. Hungary’s government targets economic growth of 1.5% in 2023. The EBRD said GDP growth would slow this year, from 4.6% in 2022, as household purchasing power declines amid high inflation and government consumption shrink due to budgetary restraint. FDI inflows and other private investments are expected to support GDP growth, though “EU funds … will likely reach Hungary only in late 2023 or 2024”, it added. The EBRD sees Hungary’s GDP growth picking up to 3.5% in 2024 as external demand improves and real incomes recover.