In 2023, inflation in Hungary will be by far the highest in the entire European Union, and economic growth will be one of the lowest, even lower than that of Ukraine, Hungarian media write.
According to the spring economic forecast published by the European Commission on Monday, inflation in the entire European Union in 2023 will amount to 6.7 percent, and 5.8 percent for the euro area.
For Hungary, the projected result is the worst in the entire European Union: inflation this year is expected to amount to 16.4 percent., and in 2024 it is to fall to 4 percent. Thus, Hungary will be the only EU country with higher inflation in 2023 than in the previous year.
In turn, in 2024 the highest inflation in the EU will be in Poland. We write more about it HERE.
Orban has a problem. GDP is at the bottom
In addition The economic growth in Hungary will be only 0.5% this year.; 2.8% is expected next year.
“This year, for the first time, the European Commission has prepared forecasts for three candidate countries. They show that Moldova, Bosnia and Herzegovina and even war-torn Ukraine will have higher GDP growth this year than Hungary,” commented the economic portal HVG.
However, it should be noted that there are several EU countries where GDP growth is expected to be even lower than in Hungary: Estonia, Austria, Finland, Sweden. In Poland, economic growth in 2023 is to amount to 0.7 percent.
EC forecasts — spring 2023
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European Commission
Hungary has one of the worst fiscal sustainability records. Last year, only Italy had a larger public deficit.
According to data published last week by the Hungarian Central Statistical Office (KSH), in April, inflation amounted to 24 per cent, with food prices increasing by 37.9 per cent and energy prices by 41.8 per cent. The authorities blame the highest increase in prices in more than a quarter of a century on EU sanctions on Russia in connection with the war in Ukraine.
Although inflation in Hungary has been the highest in the European Union since the end of last year, it finally began to decline slightly in the last two months (25.2 percent in March and 25.4 percent in February).
The government in Budapest announces that by the end of the year inflation will return to the single-digit level.
2023-05-15 16:43:30
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