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Hungary’s economic outlook seen as uncertain

March 5th, 2022

A leading investment banker predicts that the war in Ukraine will have seriously negative economic implications for Hungary where soaring inflation may trigger stagflation.

The investment banker and pundit Viktor Zsiday suggests that Hungary’s economic outlook has become uncertain. Zsiday fears that in most developed economies, inflation will remain high in Hungary despite the National Bank’s determination to raise the base rate. Zsiday predicts that the next years will be marked by increasing monetary restrictions and slow GDP growth. He adds that the potential suspension of EU funds and a prolonged war in Ukraine may further damage Hungary’s prospects. A swift end to the war and coordinated intervention by the government and the National Bank would be necessary for the Hungarian economy to avoid stagflation, Zsiday concludes.

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