For the time being, GDP growth is relatively fast
Being at the helm for eight years, Fidesz-KDNP won a two-thirds majority in the parliamentary elections again on April 8th. This is expected to entail a stronger establishment of the one-centred Hungarian political model than before. The continued deterioration of competitiveness, the deepening conflicts with the EU and the uncertain decline in EU transfers after 2020 pose great challenges to the sustainability of this policy. The idea of drastically stimulating corporate and retail borrowing instead of strengthening competitive market conditions seems to be a new problem rather than a solution. However, the GDP growth rate may be close to 4 per cent in 2018.
Cover photo: https://www.allianz.hu