In 2026, Hungary's primary budget deficit is expected to increase compared to 2025, highlighting the importance of keeping the deficit under control. The central bank is maintaining its rate to contain inflationary risks.
The Hungarian government has announced the introduction of emergency measures to support farmers due to a severe drought threatening the country's agriculture and economy. Swift actions are expected to minimize the consequences.
Hungary's new Prime Minister, Péter Magyar, is in talks to secure around €10 billion from the EU recovery funds. The agreement is expected to be signed soon.
According to Erste's forecast, Hungary's economy could grow by 2% in 2026 after a period of stagnation, supported by improved external demand and a recovery in the German economy. However, risks related to inflation and fiscal policy remain.