Economic growth could exceed 7% this year

The Inflation has recently been higher than expected. For this year as a whole, we expect inflation to be 4.7%, which could moderate to 3.8% next year—still above the central bank’s target, but back within the target range. With labour shortages re-emerging in a growing number of sectors, wages could resume dynamic increasing, averaging 10.6% in 2022, but this will be significantly affected by the decision on the minimum wage.

Oct 11, 2021

The main risks to economic growth include new waves or new mutations of the coronavirus and associated restrictions, shortages of chips and raw materials for the industry, and transport difficulties.

The Monetary Council of the Magyar Nemzeti Bank has tightened monetary conditions again. Although the interest rate was increased less than expected, by 15 base points, the decision was taken to phase out the swap facility for HUF liquidity and to further reduce the extent of the treasury security purchase programme.

On 24 September, Moody’s upgraded Hungary; the Hungarian sovereign debt rating is, therefore, at same level at all the three major credit rating agencies.

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Economic growth could exceed 7% this year

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