Barclays Joins Citi, Erste in Seeing More Forint Weakness Ahead
- Fiscal risks compound anemic growth prospect, analysts warn
- Central bank repeats call for caution as risk sentiment swings
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The forint is poised to extend its status as the underperformer among eastern Europe’s currencies, according to a growing chorus of strategists from Barclays Plc to Citigroup Inc.
Hungary’s growth remains anemic amid a decline in investment due to a European Union funding freeze over rule-of-law concerns. Furthermore, there is no end in sight to years of budget overshoots. All this makes the forint highly vulnerable to swings in global risk appetite and paints a rather bleak outlook for Hungarian assets, the strategists say.