Budapest's Economy Set to Shrink in 2023

Published: December 01 2023

The Hungarian economy is expected to weaken in 2023, with the GDP contracting by 1.2% in the first three quarters of the year. This article explores the reasons behind this shrinkage and its potential impact.

Hungary's trade surplus reached 1.3 billion euros in September, widening from previous months. However, both exports and imports saw declines, with exports falling by 4.3% and imports dropping by 19%. Trade with other European Union member states accounted for a significant portion of Hungary's exports and imports.

The contraction in GDP can be attributed to various factors, including the decline in exports and imports. Hungary's terms of trade improved during this period due to the strengthening of the forint against the euro and the dollar. Additionally, the GDP grew by 0.9% quarter-on-quarter in the third quarter, but fell by 0.3% when adjusted for seasonal and calendar year effects.

Given the contraction in GDP and the challenges faced in the trade sector, experts have a grim prognosis for the Hungarian forint, predicting a potential decline in its value. The weakening economy raises concerns about its future performance and the breakout points needed to drive growth.

The Hungarian economy is facing challenges in 2023, with the contraction in GDP and a decline in trade. It is important for policymakers and stakeholders to address these issues and identify strategies to stimulate growth and improve economic performance.

What does the article say about the Hungarian economy in 2023? According to the article, the Hungarian GDP contracted by 1.2% in the first three quarters of 2023, indicating a weakening of the Hungarian economy.

What is the trade surplus of Hungary in September 2023? In September 2023, Hungary's trade surplus reached 1.3 billion euros, widening from 665 million euros in the previous month.

What were the export and import figures for Hungary in September 2023? In September 2023, exports fell by 4.3 percent to 12.9 billion euros, while imports dropped by 19 percent to 11.5 billion euros.

Which countries account for the majority of Hungary's exports and imports? Trade with other European Union member states accounted for 76 percent of Hungary's exports and 69 percent of its imports in September 2023.

How did Hungary's terms of trade change during the period mentioned in the article? Hungary's terms of trade improved by 12 percent during the period mentioned in the article as the forint firmed 4.3 percent to the euro and 11 percent against the dollar.

What were the year-on-year changes in Hungary's exports and imports from January to September 2023? From January to September 2023, Hungary's exports increased by 7.2 percent year-on-year to 112.9 billion euros, while imports fell by 5.2 percent to 105.9 billion euros.

What was the trade surplus of Hungary in the period January to September 2023? In the period from January to September 2023, Hungary's trade surplus reached 6.9 billion euros.

What was the quarter-on-quarter growth rate of Hungary's GDP in the third quarter of 2023? The quarter-on-quarter growth rate of Hungary's GDP in the third quarter of 2023 was 0.9 percent, adjusted for seasonal and calendar year effects.

How did GDP change when adjusted for seasonal and calendar year effects in the third quarter of 2023? When adjusted for seasonal and calendar year effects, GDP dropped by 0.3 percent in the third quarter of 2023.

What was the annual change in Hungary's GDP for the period from Q1 to Q3 2023? For the period from Q1 to Q3 2023, Hungary's GDP fell by 1.2 percent on an annual basis.