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Hungary Cuts 2025 Growth Forecast Amid Economic Struggles

8/1/2025

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Summary

Story summary

Hungary's government has slashed its 2025 economic growth forecast to a mere 1%, down from 2.5%, as the nation grapples with the lingering effects of inflation stemming from Russia's invasion of Ukraine. With Prime Minister Orban facing mounting electoral challenges, the administration aims to boost the economy through tax cuts and pension hikes, all while keeping the budget deficit under 4%.

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Story summary

Hungary's government has slashed its 2025 economic growth forecast to a mere 1%, down from 2.5%, as the nation grapples with the lingering effects of inflation stemming from Russia's invasion of Ukraine. With Prime Minister Orban facing mounting electoral challenges, the administration aims to boost the economy through tax cuts and pension hikes, all while keeping the budget deficit under 4%.