The Hungarian economy slowed in the second half of the year due to rapidly rising interest rates and inflation.
The Hungarian forint fell to a record low against the euro. As a result, Prime Minister Viktor Orban had to negotiate with the European Union on the release of fixed funds, Reuters reported on Monday, June 27th.
Today, the forint is falling against the euro to a record low of 404.50. Overall, this year it has weakened by 8.6%.
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It is argued that the Hungarian currency could strengthen if Brussels unblocks grants and loans worth approximately 15.5 billion euros. These funds are also needed by Budapest to support the economy, which is expected to slow in the second half of the year due to rapidly rising interest rates and inflation.
The agency points out that, like other EU countries, Hungary unveiled a plan last year on how it will use EU grants to make its economy greener and more high-tech.
But unlike the plans of most other countries, Hungary has not yet received approval due to EU concerns about corruption, independence of the judiciary and the rule of law.
“Hungary’s vulnerability has increased this year. The current account deficit has widened largely due to high charges for energy imports at a time when the government is just beginning to contain a large deficit in budget after violent spending helped Orban win a massive election victory in April. ” , says the message.
Hungarian government officials have indicated in recent weeks that an agreement in Brussels is expected soon, but no decision has yet been made.
Recall that Hungary has introduced restrictions on the sale of fuel. Now at filling stations owned by Hungarian MOL and Austrian OMV, you can only buy 50 liters of fuel per day.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.