Analysts: Orbán Win = Economic Growth

  • 11 Apr 2018 11:34 AM
  • Hungary Matters
Analysts: Orbán Win = Economic Growth
On the economic front, the ruling alliance’s sweeping win will ensure economic policy continuity, Fitch Ratings said in a note released in London.

This will support strong growth this year, though risks of macroeconomic imbalances emerging had increased in the wake of rapidly rising wages and housing prices.

“Tighter [monetary] policy is reflected in our 3% 2019 growth forecast.”

In a separate note, financial consultancy Capital Economics said a more general economic challenge facing Fidesz in its third term was the late stage of the economic cycle. After several years of rapid economic growth, capacity constraints are starting to mount, it said.

Although inflation has been soft in recent months, it is likely to rise over the course of the coming parliamentary term, the consultancy added.

Economic growth is likely to be constrained by Hungary’s potential GDP growth rate, which is around 2.0-2.5%, and there is a growing risk of monetary policy being kept too loose for too long, Capital Economics said.
 

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • Pharmaceutical Industry Key Sector In Hungary Says PM Orbán

    Pharmaceutical Industry Key Sector In Hungary Says PM Orbán

    • 26 Sep 2018 7:19 AM

    The pharmaceutical industry is a key sector and area of innovation for Hungary and the government’s aim is to increase its share of GDP from the current 6 to 8%, Prime Minister Viktor Orbán said at the inauguration of dietary supplement maker Béres Gyógyszergyár’s new expansion in Szolnok (E Hungary).

  • Local Opinion: Hungarian GDP Grows By 4.7%

    Local Opinion: Hungarian GDP Grows By 4.7%

    • 25 May 2018 11:38 AM

    As the Central Statistical Office reports first quarter GDP data, analysts across the political spectrum wonder if fast growth can be maintained in the long run, and whether the Forint will weaken against the Euro.

  • Video: Orbán, Netanyahu Address Hungarian-Israeli Business Forum

    Video: Orbán, Netanyahu Address Hungarian-Israeli Business Forum

    • 20 Jul 2017 8:56 AM

    All political obstacles to Hungarian - Israeli economic cooperation have been cleared, Prime Minister Viktor Orbán said at a Hungarian- Israeli business forum that was also attended by Benjamin Netanyahu, his Israeli counterpart. In his closing remarks to the forum Orbán said Hungary’s Eximbank had opened a 600 million dollar credit line to support partnerships between Hungarian and Israeli companies.