GDP grew by 6.5% in Q2 this year in Hungary

In July 2022, inflation risks continued to rise both globally and in Central and Eastern Europe. This is mainly caused by a sharp rise in energy prices, more expansionary economic policies during the coronavirus crisis, disrupted supply chains and, crucially, the consequences of the increasingly protracted Russo-Ukrainian war.

Sep 1, 2022

The sharpest monetary erosion was in the Baltic countries and Central and Eastern Europe. According to the Harmonised Index of Consumer Prices (HICP), consumer prices rose by 23.2% in Estonia, 21.3% in Latvia and 20.9% in Lithuania.

The inflation environment caused by the war is forcing central banks to raise interest rates. Hungary has the highest base rate in the region (11.75%), following the central bank’s August rate hike (100 basis points).

In an environment of higher interest rates and higher inflation, there is a trend towards a preference for premium Hungarian government bonds with above-inflation yields over those with fixed yields.

The full report can be downloaded here:

GDP grew by 6.5% in Q2 this year in Hungary

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