Hungary to Miss Budget Target With GDP Contraction, Survey Shows

  • Shortfall may be 4.3% of GDP this year compared with 3.9% goal
  • Meeting budget target will be “hardest task,” minister says

The assembly line at a factory in Tatabanya, Hungary. 

Photographer: Akos Stiller/Bloomberg
Lock
This article is for subscribers only.

Hungary’s budget deficit will exceed the government’s target this year as an economic contraction challenges fiscal policy, according to a Bloomberg News surveyBloomberg Terminal.

The shortfall will be 4.3% of gross domestic product, exceeding the government’s 3.9% target and the median estimate Bloomberg Terminalof 4.1% made by economists in the second quarter, according to the Bloomberg poll. The economy will shrink 0.3% for the year compared with 2022, worse than the previous estimate that saw 0.2% growth and the government goal for 1.5% expansion.