Hungary: No room to counter a deep downturn – ABN Amro

Anke Martens, a senior analyst at ABN Amro, reviews the current situation of the Hungarian economy, expecting a slowdown. EUR/HUF is trading at 335.02 after escalating since the start of the year.

Key quotes

“Hungary grew 4.8% last year, down only 0.3%p from 2018.”

"Hungary is combining a slowdown in industrial production and trade with the mitigating effects of previous investments into a modest slowdown."

"Hungary does not have significant fiscal policy space to counter a deeper than expected downturn."

"In Hungary, inflation came in at 4.7% YoY in January, at a level not seen since the end of 2012, with strong internal demand accelerating price increases."

"The Hungarian Central Bank has remained dovish, although the latest inflation numbers were accompanied by a pledge of vigilance."