Hungarian government recognizes economic problems: GDP growth forecast lowered to 1%

The Hungarian government has sharply lowered its GDP growth forecast, emphasizing the economic problems faced by the Prime Minister Viktor Orban before the most difficult election since his return to power. About writes Bloomberg.

Economy Minister Marton Nagy told reporters on Tuesday that gross domestic product could grow by 1% in 2025.

"Orban's 'jump-start' forecast has run into difficulties, with the economy on the brink of another recession after a first-quarter GDP contraction," Bloomberg notes.

According to Nadia, the economy probably stagnated in the second quarter, and in the second half of the year its growth may be much lower than expected.

Since March, the government has been expecting GDP growth of 2.5%, although the budget for 2025 was approved with a GDP growth of 3.4%, notes hungarian edition of Portfolio.

Next year, the government expects growth of 3.1%, down from the previous estimate of 4.1%.

The figure shows how the government's official expectations for GDP growth through 2025 have gradually deteriorated in recent years.

Following the release of the new forecasts, the forint weakened by 0.4% against the euro, the worst performer among 23 emerging market currencies.

Hungary's economy is facing challenges, including a decline in industrial production and weak retail sales. Businesses are also suffering from government intervention and uncertainty over tariffs.

• Earlier, the Polish edition Rzeczpospolita wrote that the Hungarian viktor Orban's economic model is in deep crisis. According to the European Commission's forecasts, the country's economic growth rate this year will be only 0.8%, and the average Hungarian has already become poorer than citizens of Romania and even Russia.