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Orban Says Economy Will Recover in 2H

HUNGARY
  • Speaking on state radio this morning, Prime Minister Orban said Hungary’s economy is poised to show signs of recovery from 2H after “ugly” 2Q GDP figures that showed contraction for a fourth consecutive quarter. He said economic performance may be flat or “positive zero” for 2023, while reiterating his previous view that inflation may drop to single digits at some point between October and December.
  • He also said economic expansion "must be linked to pay rises". Protection against high prices can happen by suppressing inflation and by raising wages, he said, adding that the government was intent on protecting families.
  • Orban will hold talks with Qatar Emir Sheikh Tamim bin Hamad Al Thani in Budapest and announce business deals, Bloomberg report. The meeting will take place on Saturday, with Orban also to meet Turkish President Erdogan and Serbian President Vucic.
  • Hungary's state debt relative to GDP reached 75.0% at the end of the second quarter, preliminary data released by the NBH shows. The ratio was up marginally from 74.9% at the end of Q1.

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