Hungary has emerged from recession. In the third quarter, gross domestic product (GDP) grew by 0.9% compared to the previous quarter. On a year-on-year basis, however, economic output still contracted by 0.3%.
Exactly one year ago, economic output plunged in the fall. At the beginning of 2023, adjusted economic output was 1.1% below the previous year’s level, and by the middle of the year it was as much as 2.2% lower.
However, domestic demand and investment continue to suffer, while net exports are now making an important positive contribution to the economy. Energy prices, which have stabilized at lower levels, and the inflow of foreign direct investment (FDI) are brightening sentiment, while the war in Ukraine, the conflict in the Middle East, and high interest rates are dampening it. Analysts agree that healthy economic growth will only be possible in 2024, given the tight budget situation, if Brussels releases the billions of euros that have been withheld.