We cut our 2025 GDP growth forecast for Hungary by 1.2ppts to 2.1%, following an estimated 0.7% expansion this year. The downward revision was triggered by a negative surprise in Q3 when GDP contracted for the second consecutive quarter. While we expect growth to pick up in 2026-2027, we consider risks as increasingly skewed to the downside.
Hungary: Technical recession heralds a more backloaded recovery