wiiw Forecast Reports
HUNGARY: Tipping from recession to overheating
in: Recovery Beating Expectations
wiiw Forecast Report No. Autumn 2021, October 2021 , pp. 59-62
By summer 2021, Hungary’s economy had regained its pre-pandemic level. Recovery was helped by dynamic growth in industry and a remarkable contribution by net exports. The economy is overheating, however, and inflation has climbed to around 5%. While the central bank has begun tightening monetary policy, the government has stepped up its expansionary fiscal policy, with an eye to the elections early next year. After the elections, the overheating will have to be tackled. The current dynamic growth cannot be maintained for the duration of the forecast.
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Countries covered: Hungary