Hungarian economic growth was strong in the first half of 2019, but the signs of a deceleration are already discernible. In Q2 compared to Q1, investment growth slowed notably, while the external environment deteriorated. From next year, EU transfers will drop by a substantial degree, further weighing on investment. Labour shortages will remain problematic, and put further upward pressure on wages. We expect a significant slowdown of economic growth over the forecast horizon, from 4.3% this year to 3.1% in 2020 and to 2.6% in 2021.

map Hungary
Main Economic Indicators201620172018201920202021
Population, 1000 persons981497889776...
GDP, real change in %
GDP per capita (EUR at PPP)198002060022000...
Gross industrial production, real change in %
Unemployment rate - LFS, in %, average5.
Average gross monthly wages, EUR8459611035...
Consumer prices, % p.a.
Fiscal balance in % of GDP-1.8-2.4-2.3...
Public debt in % of GDP75.572.970.2...
Current account in % of GDP4.52.3-0.5-0.1-0.1-0.1
FDI inflow, EUR mn-585172088469...
Gross external debt in % of GDP96.384.180.1...

Basic data are continuously updated.

* Forecasts are changed beginning of March, July and November.
See Press Conferences.


HUNGARY: Clear signs of decelerating growth

Sandor Richter
in: Braced for Fallout from Global Slowdown
wiiw Forecast Report No. Autumn 2019, November 2019 , pp. 68-71
Details and Buy


Monthly Report No. 10/2019

Richard Grieveson, Julia Grübler, Sebastian Petric and Leon Podkaminer
wiiw Monthly Report No. 10, October 2019
42 pages including 29 Figures