BUDAPEST, June 3, (Xinhua) -- Hungary's economy is projected to grow by 0.9 percent in 2025 before accelerating to 2.4 percent in 2026, according to the latest Economic Outlook released Tuesday by the Organization for Economic Co-operation and Development (OECD).
The Paris-based organization expects private consumption, bolstered by rising real wages, to be the main driver of growth in 2025, while investment activity is expected to rebound in 2026 following a weak performance this year.
Private consumption is forecast to increase by 5.4 percent in 2025, whereas investments are projected to decline by 3.0 percent before bouncing back with a 5.4 percent growth in 2026. Inflation is anticipated to moderate, with the Consumer Price Index (CPI) estimated at 4.9 percent in 2025 and 3.6 percent in 2026.
The OECD also forecasts that Hungary's budget deficit will remain elevated, at 4.2 percent of GDP in 2025 and 4.0 percent in 2026.
The report points to several downside risks, particularly related to Hungary's key trading partners, most notably the euro area. It also emphasizes the importance of structural reforms to support investment and foster long-term economic growth.
"Better financing conditions, lower trade policy uncertainty, and full implementation of recent public integrity reforms will be key to support a rebound in investment," the report said. ■