GDP growth slowed down and inflation decelerated as well

The Hungarian economy increased outstandingly in the first half of 2019, by 5.1 per cent, the same rate as last year. Until now, this rate has been the fastest in the EU this year, about three times the average. Although the third quarter started well in July, industry and construction slowed down markedly in August. In addition, business expectations suggest no improvement in the coming months. However, the rate of inflation has also decreased since May, by a total of almost 1 percentage point until September. The state of public finances is also favourable, though after 2018 the current account is again in deficit this year, and the forint is weak. The deterioration in global economic conditions and the weakening of the stimulating effects of EU transfers anticipate a marked deceleration of GDP growth in 2020.

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