Macroeconomic Forecast Hungary

The Hungarian economy contracted by 7.6% year-on-year in real terms in the second quarter of the year, eclipsing the 6.7% contraction recorded in Q1. Though the pace of decline continued to accelerate, we nevertheless maintain our core view that H109 was the trough in the central European economy's recession. That said, given Hungary's weak banking system and poor macroeconomic fundamentals, the economy's recovery will be weak. We forecast real GDP contracting by 6.4% this year, and posting marginal growth of only 0.1% in 2010.

To read the full article, please choose one of the following options: