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International bank talks about the gloomy future of Hungary’s economy
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Hungary’s economy will turn into a recession in 2023 even if it starts to grow in this year’s second half. Furthermore, the bank expects no EU money will come to Hungary this year. Moreover, we may lose all our RRF money.
According to portfolio.hu, the London centre of the UniCredit Bank shared its analysis about Hungary’s economy recently. They said that the Hungarian GDP would fall by 1 percent in 2023, but in 2024 will see a 3.5 percent increase. To make matters worse, they calculate with no EU money in 2023 and believe that the forint will not be able to break the 400/EUR threshold. To make matters worse, they expect a weakening this year and calculate a 420/EUR exchange rate.
They believe that the inflation will remain two-digit in 2023. But UniCredit reckons that FDI will start to flow again in Hungary. Meanwhile, we will get the EU’s EUR 6.3 billion development fund in 2024. However, they think receiving the RRF funds is uncertain even in 2024.
All in all, 2023 will be the year of difficult decisions, according to the representatives of the bank.
Hungary’s budget ends 2022 with HUF 4,753 bn shortfall
The Hungarian budget, excluding local councils, was 4,753.4 billion forints in the red at the end of 2022, as against the official target of 3,152.7 billion forints, according to preliminary data released by the Finance Ministry on Wednesday. The deficit was 1,287 billion forints at the end of November. The central budget posted a shortfall of 4,611.5 billion at the end of December. Social security funds were 405.8 billion in the red, while the separate state funds had a surplus of 263.9 billion, the Hungarian News Agency (MTI) wrote.