Hungarian Conservative

The Hungarian economy could grow by 2 per cent this year, a downward revision from the 4 per cent forecast at the end of last year. This adjustment is attributed to the population’s caution in spending, which is only gradually diminishing after last year’s high inflation. Nevertheless, consumption growth is driving the Hungarian economy this year, even though the savings rate remains at a historically high 15 per cent. Márton Nagy noted that while investment and exports are exerting a negative impact on growth, sectors such as retail sales, tourism, and services are contributing positively.