The finance ministry said in a statement that Hungary’s economy will avoid recession this year, expanding by 1.5% and by 4% in 2024.
In an update of the country’s Convergence Program submitted to the European Commission, the finance ministry said Hungary had faced “a number of economic policy challenges” since the last update to the program was submitted a year earlier because of the “perilous international environment”. Disinflation will accelerate in the second half of the year, with inflation falling into single digits by the end of the year, the statement said. The updated program shows GDP growth accelerating to 4% in 2024 and climbing over 4% for the rest of the forecast horizon. It shows unemployment staying below 4% in the coming years. The document affirms this year’s budget deficit target of 3.9% of GDP and calculates a falling deficit in the following years. The public debt-to-GDP ratio is expected to fall to 63.9% by 2025, the ministry said.