Questions on securities

Monday - Friday 09:00-17:00

Quick guide

Choose your country

Research Detail

2023/12/20 / Erste Group Research

Economy to slowly recover on the back of domestic demand

We expect the economy to decline by 0.6% annually in FY23. The main culprit behind the weak performance is the huge negative contribution of domestic use (investments and consumption) to GDP. Prospects for 2024 are more promising, however. The carryover effect from this year will be supportive, industry is to improve, while further moderation of inflation and the continuation of wage outflow could help the recovery of consumption. The weakness of the external environment remains a risk to the growth outlook, however.

In 2H23, the disinflation process accelerated. The continued decline of headline inflation was mainly supported by the base effect, easing of energy and food prices, stabilization of the HUF and weak consumer demand. The year 2024 is to bring other challenges on the disinflation front, as the supportive role of the base effect fades away next spring, while domestic demand improves. After merging the policy rate and the effective rate at 13%, monetary easing continued in 4Q23. In December, the policy rate was cut to 10.75%. In line with the stalling disinflation, the rate-reduction strategy may somewhat change in spring, as well.

PDF Download Download PDF (916kB)

General information

AuthorErste Group Research
Product nameCEE Country Macro Outlook
Topic in focusFX, Macro/ Fixed income
Economy in focusHungary
Currency in focusHungarian Forint
Sector in focus-


We use cookies and web analysis software to give you the best possible experience on our website. If you consent, these tools will be used. For more details please read our Data protection policy.


Any information, material and services regarding financial instruments and securities provided by Erste Group Bank AG or any of its affiliates (collectively “Erste Group“) on this and any linked website hereafter (jointly the “Websites”) shall be exclusively to investors who are not subject to any legal sale or purchase restrictions (the “Interested Party“).

The publication and distribution of information as well as offering and selling of products and services described on the Websites is prohibited by law in some jurisdictions. For this reason, persons in countries in which the publication as well as the offering and selling of products and services described on the Websites are not permitted by law, must not enter the Websites and/or acquire the products displayed on the Websites.

Neither Erste Group nor any third party shall offer access to the Websites or offer the products to especially, but not limited to citizen/residents of the United States and “U.S. person” (as defined in Regulation S under the US Securities Act 1933 as amended). For this reason, the distribution or redistribution of the information, materials and products into United States or into any other jurisdiction where it is not permitted under the applicable law, as well as to the citizens/residents of these countries shall be prohibited. The securities displayed on the Websites have not been and will not be registered under the US Securities Act of 1933 and trading in the securities has not been approved for purposes of the US Commodities Exchange Act of 1936. For this reason the securities may, inter alia, not be offered, sold or delivered within the United States or, for the account and benefit of U.S. persons.

The Interested Party is solely responsible to examine, whether he may enter the Websites under the law applicable to it. Erste Group shall not be responsible for the distribution of content of any of the Websites to individuals or entities which provide false information about their right to enter the Websites. For this reason Erste Group shall not be liable for any legal claims or damages which may result from the unauthorized entering or reading of the Websites.

By agreeing to this hereto, the Interested Party confirms that
(i) It has read, understood and accepted this Information and the Disclaimer;
(ii) It informed itself about any possible legal restriction and warrants that it is not restricted or prohibited to enter the Websites according to any law applicable; and
(iii) It does not make available the contents of the Websites to any person who is not qualified by law to enter the Websites.