Facts & Statistics

Hungary saw top-level growth in 2021, expects mid-level growth in 2022

The government should increasingly aim to rebalance the economy, according to an analysis by GKI.

In 2021, the GDP output of the Hungarian economy will exceed its pre-pandemic level. After 6.7 percent growth in 2021, a growth rate of around 4.7 percent is expected in 2022, according to a forecast by GKI Gazdaságkutató Zrt. 

Industrial output and foreign trade declined in the third quarter and are expected to continue to do so in the final quarter of this year. 

According to the forecast, the divergence is due to overly ambitious stimulating economic policies in front of next spring’s elections, but the conflict with the EU, which led to the withholding of funds, as well as adverse developments in the global economy have also played an important role. 

GKI expects economic growth to be between 4.5 and 5 percent in the fourth quarter and around 6.7 percent for 2021 as a whole, broadly in line with the forecast of the Ministry of Finance. 

Hungary’s 2021 growth is expected to be among the best in the region, but will be weak to medium in 2022 due to the need to address imbalances. 

Real earnings are expected to rise by 3.5 percent, while real pensions by 4 percent due to the high pension premium and the payment of the first week of the 13th month pension. Real income is expected to increase by 4 percent and household consumption by 3.5 percent.

In 2022, gross earnings will rise by around 14 percent, resulting in a real earnings increase of 8 to 9 percent.

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