According to analysts from K&H Bank, Hungary’s economy is expected to grow by three percent next year and could continue in the same vein year-on-year in the near future. However, experts predict that this year’s record high cannot be sustained.
During a recent economic conference in Győr, David Németh, a senior analyst at K&H Bank, said that “within global economic growth, our region is currently at the forefront with growth of around five percent,” adding that “growth of this magnitude or greater is only seen in Asian countries, or in some emerging African countries.”
However, world trade is coming to a halt, he said, not least because of the Sino-American trade war and the impact it’s having on the German economy. Thus, only a slow growth of around one percent is expected there, and this could in principle affect Hungary, as 30 percent of the country’s exports head that way.
“Our growth is still good, there are no signs of slowing down, but it should be noted that our regional counterparts have been slightly ahead of Hungary in the past and are now growing along with us,” Németh added.
The most important question is whether Hungary can secede from German economic growth in the future. According to the analyst, the dynamics of wage growth resulting from labor shortages and thus the growth of domestic consumption are helping to drive economic growth.
Németh concluded that what is particularly important for Hungary’s further development is investment. Importing and applying new technologies is also essential, but this requires continuous training of the workforce.