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HUNGARY ECONOMIC OUTPUT FORECAST TO SHRINK BY 4.7% IN 2020 - TAKARÉKBANK

 

Hungary’s economic output is forecast to shrink by 4.7% this year, according to Takarékbank analyst Gergely Suppan. Earlier, Takarékbank forcast a 3.2% contraction. At the same time, output next year is likely to grow by 7.2%, Suppan said. Although much uncertainty surrounds the second wave of the coronavirus pandemic, it appears that the Hungarian economy was most severely buffeted by the virus in the second quarter, he added. It is expected that all sectors of the economy will contribute to growth, Suppan said, adding that the severity of restrictive measures seen in the spring was unlikely to be repeated. By the second half of next year economic output will have likely rebounded to pre-pandemic levels, he added. Inflation is expected to average 3.5% this year before easing in the early months of 2021, possibly averaging 3.7% in 2021, Suppan said.