The Hungarian economy showed growth of 7.1% in 2021. Compared to the pre-crisis year 2019, GDP even increased by 2.1%. In the Corona year 2020, the adjusted economy shrank by 4.9%.
Analysts were pleasantly surprised by the record-breaking increase in GDP. In their opinion, growth was driven by continued buoyant consumption and investment. With the exception of agriculture, all sectors contributed to the increase in GDP.
Whether Hungary’s economy can also grow above 5% in 2022 depends crucially on the restoration of global supply chains, energy prices and inflation. The latter climbed to a record high of 7.9% yoy in January. The economy could be boosted by the increased minimum wage, income tax exemption for young people under the age of 25 and income tax refunds after 2021 for families with children.