Key View

• We forecast Hungary's construction industry to see real growth of 7.6% y-o-y during 2021, as the industry returns to positive real growth territory following the Covid-19 pandemic.
• The imminent disbursement of the EU's 'Next Generation EU' recovery funding, of which Hungary will receive EUR7.2bn, will directly support investment in

Key View

• We at Fitch Solutions forecast the Hungarian National Bank (MNB) to keep its base policy rate at 0.60% through 2022. The MNB will likely use its one-week deposit rate it sets at weekly tenders to fine-tune its monetary policy stance.
• The MNB will continue to expand its balance sheet under its QE programme to ensure favourable

Key View

• We at Fitch Solutions are neutral on the Hungarian forint over the short term, as a dovish monetary policy stance weighs on the currency is counterbalanced by easing inflation, which boosts real returns and lends support to the currency.
• Over a longer-time horizon, we are cautiously bullish as a favourable growth differential with

Key View

• Hungary's dental tourism market will lose a significant amount of revenue in 2020, due to Covid-19.
• We at Fitch Solutions have lowered our 2019-2024 compound annual growth rate to 7.4 in US dollar terms, resulting in an estimated market value of USD58.2mn in 2024.
• Until definitive actions are taken to reopen tourism sectors, Hungary

Key View

• An agreement between Hungary and China for the Export-Import Bank of China to finance the Hungarian stretch of the Budapest-Belgrade railway marks a significant expansion of China’s Belt and Road Initiative (BRI) in its efforts to make inroads into Central and Eastern Europe (CEE).
• The decision by Hungary’s parliament to classify

Key View

• The Hungarian National Bank will take a mixed policy stance, generally accommodative but with likely occasional interventions to keep the currency stable.
• We forecast the Hungarian forint to average HUF352/EUR over 2020, up from a weak spot rate of HUF358/EUR after having sold off since mid-March.
• We at Fitch Solutions believe

Key View

• Hungary's fiscal policy will follow a tighter path over the coming years as the government seeks to consolidate its fiscal position.
• A tighter fiscal policy gives the central bank more manoeuvring room to remain dovish, as it somewhat reigns in risks of overheating.
• We at Fitch Solutions forecast the fiscal deficit to come at 1.9%