Forint Weakens as Hungary’s Industry Output Points to Recession
Hungary’s forint weakened the first time in three days as the nation’s industrial output plunged in June, raising the chances of a second recession in four years.
The currency depreciated 0.6 percent to 277.21 per euro by 5:01 p.m. in Budapest.
Industrial production dropped 2.2 percent in June from May, the statistics office said in a preliminary report today. Output rose a workday-adjusted 0.6 percent in June compared with the same month last year, missing economist estimates in a Bloomberg News survey for a 2.2 percent expansion.
The International Monetary Fund last month urged Hungary to step up efforts to boost growth and make budget financing sustainable as part of a week of “constructive” loan talks that the Cabinet said will resume in September. The economy contracted in the first quarter. Second-quarter gross domestic product data will be published on Aug. 14.
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