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EBRD: Hungary’s economy likely to shrink slightly this year

The Hungarian economy is likely to shrink by 0.2 percent this year, the European Bank for Reconstruction and Development (EBRD) has forecast.

“Weak external demand, tight financing conditions and delayed disbursement of EU funds, will likely result in a … contraction of GDP in 2023, notwithstanding various government stimuli programmes,” the EBRD said in its latest Regional Economic Prospects.

In its May forecast, the EBRD predicted growth of 0.4 percent.

Hungary’s economy shrank by 1.7 percent year on year in the first half, according to the Central Statistics Office (KSH).

In 2024, growth of 2.8 percent is expected on the back of recovering domestic demand, the EBRD said.

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