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Economy Plunges Deeper into Recession

HUNGARY
  • Hungary's economy contracted by an annual 2.4% (Est: -1.4% y/y) in the second quarter, a first reading of data released by the Central Statistical Office shows. Quarter on quarter, GDP eased by 0.3% (Est: +0.2%), falling for the fourth quarter in a row. The statistics office said industry and market-based services, mainly transport, warehousing and trade, contributed the most to the decline, while the drop was moderated by the performance of agriculture.
  • Following the data, the Finance Ministry said the government expects the economy to rebound from recession in the second half of 2023 based on expanding consumption, real wages and industry. It added that an improvement in foreign trade will also boost economic performance and reiterated its goal to reduce the rate of inflation to below 10% by year-end.
  • There are no more data releases on the docket today, or for the remainder of the week.

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