wiiw Forecast Reports

HUNGARY: Recovery with strong downside risks


Sandor Richter

in: Darkest before the dawn?
wiiw Forecast Report No. Spring 2021, April 2021 , pp. 73-76

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Hungary’s GDP dropped by 5% in 2020, due mostly to declining net exports, but also, to a smaller extent, to shrinking investment and household consumption. The key issues for a recovery are the early revitalisation of international value chains in the automotive industry, resilience of the small and medium-sized enterprise (SME) sector and restoration of the pre-crisis spending propensity of households. The political stakes are high in the wake of the government’s growing confrontation with the EU and the approaching elections, scheduled for early 2022.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Hungary