Finance
Hungary economy may grow 2%-3% this year, below forecast in budget, official says
Published by Global Banking & Finance Review®
Posted on February 26, 2025
2 min readLast updated: January 25, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on February 26, 2025
2 min readLast updated: January 25, 2026
Hungary's GDP growth is expected between 2%-3% in 2023, below the 3.4% forecast due to risks including a potential German recession.
BUDAPEST (Reuters) - Hungary's economic growth this year is likely to come in between 2% and 3%, below the official government forecast of 3.4%, Prime Minister Viktor Orban's chief of staff said in a podcast on news site 24.hu on Wednesday.
Gergely Gulyas said gross domestic product growth could be below the official forecast due to various risks, including problems in the German economy.
"The budget still includes 3.4% (GDP growth forecast)... but if we suppose that there will be a recession in Germany, then there are more risks, and then we can suppose that (growth) can be somewhat lower than that," Gulyas said.
Replying to the reporter's question, he said that economic growth between 2% and 3% this year seemed realistic.
Nationalist Orban is trying to revive the economy ahead of an election in 2026. But his hopes that strong growth will propel his Fidesz party to another election victory are being challenged by a rebound in inflation, sagging household morale and even a plunge in the birth rate that he is keen to boost.
None of the 12 economists surveyed in a February Reuters poll expect the economy to reach the 3.4% growth Orban had assumed in this year's budget. Erste Bank, last year's most accurate forecaster of Hungarian economic indicators, sees growth at 2% this year.
(Reporting by Anita Komuves and Gergely Szakacs; Editing by Hugh Lawson)
Hungary's economic growth this year is likely to be between 2% and 3%, which is below the official government forecast of 3.4%.
The chief of staff mentioned that risks such as problems in the German economy could lead to lower growth rates.
Orban is attempting to revive the economy ahead of the 2026 election, hoping that strong growth will help his Fidesz party secure another victory.
None of the 12 economists surveyed in a February Reuters poll expect the economy to reach the 3.4% growth that Orban had assumed in this year's budget.
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