Facts & Statistics

Auto industry can help the economy recover

Hungary's GDP could grow by 4 percent in 2021.

Credit insurance company Coface forecasts that the world economy could expand by 4.3 percent and Hungarian GDP could grow by 4 percent in 2021 after the economic slump caused by the epidemic.

According to a statement sent to the Hungarian Press Agency (MTI),  there will be significant differences in the pace of recovery between countries and sectors. While China and several Asian countries are outperforming, the most advanced economies will not return to their pre-crisis GDP levels this year.

According to Coface experts, this could lead to an increase in income inequality, which could in turn lead to increased dissatisfaction in more countries and more frequent demonstrations.

In Hungary, the credit insurance company expects the automotive industry to be one of the engines of the recovery. However, corporate investment may remain modest, as companies will first use resources to boost their production capacity instead of on improvements. On the other hand, the government’s measures can provide favorable financing to enterprises, which may spur new developments. 

Hungary’s general government deficit is expected to decrease in 2021, as it will probably not be necessary to spend what the state was forced to spend in 2020 due to the epidemic, Coface pointed out.

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