April 2020
In its latest Economic forecast, the International Monetary Fund (IMF) projects Hungary’s economy will contract by 3.1% this year – 2020.
However, the IMF also foresees Hungary’s economy rebounding and expanding by 4.2% in 2021.
The forecast released last autumn 2019, the IMF had put GDP growth at 3.3% for 2020 and at 2.9% for 2021.
Inflation is seen declining to 3.3% from last year’s 3.4% and to 3.2% next year.
The unemployment rate is set to rise from last year’s rate of 3.4% to 5.4% this year; but is projected to fall to 4.0% in 2021.
The IMF’s latest forecast sees Hungary registering the second smallest economic drop in the European Union this year after Malta, whose economy is seen contracting by 2.8%. In Europe, but outside the European Union bloc, only Serbia is perceived to do better with a limited contraction of 3.0%.