Industrial output in Hungary declined more than forecast in November, fuelling concerns over the pace of economic recovery following a recession.

Industrial production in the country edged down for the 11th consecutive month in November last year, falling by an annual 5.6% compared to a 2.9% decline in October.

This is according to a statement this week by the Budapest-based statistics office.

The average estimate in a survey carried out by Bloomberg was for a 1.2% contraction.

Hungary’s prime minister, Viktor Orban, has made boosting economic growth in 2024 a priority after the highest inflation rate in the European Union battered domestic demand and slashed tax revenue, challenging the government’s fiscal targets.

Although the country’s GDP increased for the first time in five quarters between July and September last year, internal demand remained weak, according to the Economy Ministry.

“2023 was the year of vanquishing inflation, 2024 is about restoring economic growth,” the ministry said in a statement, forecasting growth in industrial output in the coming months. “The government’s goal is for GDP to post dynamic growth of 4% again,” the statement continued.

Viktor Orban’s government is prolonging stimulus programs to bolster an economic recovery. In December, the government revealed the expansion of the subsidised corporate loan program worth 1 trillion Forint ($2.9 billion) intended to boost investments, the Bloomberg report goes on to add.

In addition, retail sales declined 5.4% in November compared to the previous year, according to the country’s statistics office.


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