UPDATE 1-Hungary's Orban expects fast economic recovery when lockdown eased

Hungary will begin easing parts of its coronavirus lockdown early next month, Prime Minister Viktor Orban said on Friday, adding that he expected the economy to recover rapidly from the effects of the pandemic. "I am not among the most optimistic people, but neither am I a pessimist," he told state radio. "I expect a fast recovery."

Hungary's month-long nationwide lockdown has destroyed tens of thousands of jobs. Orban said rebuilding those was his top priority. From next month restrictions will be gradually eased to bring the economy back to normal as soon as possible, with continued limitations for the elderly, the sick, and those living in big cities who face a disproportionate risk, he said.

Hungary will follow the path of neighboring Austria, where restrictions will be eased in the coming weeks, including a reopening of schools and businesses and even bars in the foreseeable future, Orban said. He said a recent buildup of medical equipment and a quick drive to free thousands of hospital beds was necessary to prepare for a worst-case scenario of a rapid ramp-up in the number of cases during the reopening.

"From next week, there cannot be a negative scenario that we are unable to overcome," Orban said. "The most important thing is not to lose our nerve." "We are not through, but we have prepared for the worst, so now we can experiment in real life... we have to organize smartly."

Orban said he expected the economy to rebound quickly as his government focuses on saving or recreating jobs. Think tank GKI estimated that after a loss of 60,000 jobs in March, another 100,000 people will lose their work in April, a severe blow for the country of 10 million, where unemployment had been at historic lows for years amid rapid growth.

The outlook is murky. Finance Minister Mihaly Varga has said he expects gross domestic product (GDP) to contract by about 3 percent this year. The central bank said it saw a possibility of positive growth even in 2020. Orban has said he would be happy with a growth rate around zero.

"Unemployment benefits cover three months," he said. "We are around Day 40, so that will cover a while more, and I trust that by the time this is over... the economy will approach the levels it reached before."