Hungary sees double-digit economic rebound in Q2 from last year's crash

Hungary's economy is expected to grow by 13.8% in the second quarter, rebounding sharply from last year's crash due to lockdowns imposed to contain the first wave of the coronavirus pandemic, the finance minister said on Thursday. The economy will probably still have contracted in the fourth quarter of 2020 and do the same in the first quarter of this year amid continued lockdowns in effect since Nov. 11, Finance Minister Mihaly Varga said.

Hungary's economy is expected to grow by 13.8% in the second quarter, rebounding sharply from last year's crash due to lockdowns imposed to contain the first wave of the coronavirus pandemic, the finance minister said on Thursday.

The economy will probably still have contracted in the fourth quarter of 2020 and do the same in the first quarter of this year amid continued lockdowns in effect since Nov. 11, Finance Minister Mihaly Varga said. The measures imposed by Prime Minister Viktor Orban's government in November include a 1900 GMT curfew, a ban on all gatherings and the closure of hotels and restaurants.

"A lot will depend on developments on the vaccine front," Varga said at an event organised by the Hungarian Chamber of Commerce and Industry. "We expect the second quarter of this year to be the turning point, when the economy will post double-digit growth." Varga added: "We can realistically assume that restrictions can be eased."

Hungary signed a deal last month to buy 2 million doses of Russia's Sputnik V COVID-19 vaccine, the first European Union country to do so, aiming to accelerate the pace of vaccinations after a slow start. It has also signed a large deal for Chinese Sinopharm's vaccine.