Hungary Outlook: Boosting growth remains a challenge

The sharp decline in investments significantly restrained growth in 1H this year, while household consumption was somewhat stronger than anticipated. Weak external conditions and an uncertain outlook for Germany resulted in the industrial sector's underperformance, operating below capacity. Looking forward, the upcoming year may present more favorable conditions; however, the use of new export capacities will remain heavily reliant on the state of the European economy. CPI is set to stabilize below 4% in the short term but will likely increase above the upper end of the tolerance range by the year-end.