Hungary expects budget deficit to widen to 3.8% of GDP this year

Hungary's government has raised its budget deficit goal to 3.8% of economic output this year from 2.7% previously, as the country tries to mitigate the economic fallout from the coronavirus pandemic.

According to an updated convergence programme published on the European Commission's official website, the government has maintained its forecast for the economy to shrink by 3% this year. It expects the economy to rebound in 2021 and grow by 4.8%.

The unemployment rate is expected to rise to 5.6% this year from 3.4% last year.