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National Bank of Hungary chief: We won't fall this year

Christian Fernsby ▼ | May 11, 2020
The National Bank of Hungary (MNB) is leaving its GDP growth projection of 2-3 percent for this year unchanged, rather than projecting a contraction, György Matolcsy, the central bank’s governor, told Kossuth Rádió on Sunday.
György Matolcsy
National Bank of Hungary   György Matolcsy
Economic forecasts being released across Europe reflect a variety of approaches, Matolcsy said. Two financial institutions, namely the Polish and Hungarian central banks, are even more optimistic in their forecasts than the International Monetary Fund (IMF) and the Hungarian government, he added. These institutions are predicting a V-shaped economic recovery, the governor said.

Topics: Hungary

He said that while the first quarter indicators “won’t be bad”, the second quarter “will generate some pretty awful figures”. However, the third and fourth quarters are expected to make up for the losses, Matolcsy said, adding that this was the central bank’s basis for putting this year’s growth rate at around 2-3 percent.

The governor said the MNB’s forecast was backed up by the fact that “most of the Hungarian economy is working” and had also been working “during the low point that was April”.

Matolcsy added, at the same time, that certain sectors of the economy like tourism, the hospitality industry, the cultural sector and the shipping industry were vulnerable or in crisis.