Hungary’s economy sees rising optimism as OECD urges reforms

A July survey by the GKI Economic Research Institute found that both consumer and business confidence in Hungary improved, with the consumer confidence index rising by almost two points to an eight‑month high and the business confidence index climbing three points to a 38‑month peak. The overall GKI conjuncture index increased by three points, reaching a four‑and‑a‑half‑year high. Optimism spread across most sectors, while construction and services showed modest declines. About 8 % of firms plan to expand staff in the next three months, and 10 % anticipate cuts. Price expectations softened, with only 16 % planning price hikes.

The OECD’s Economic Survey of Hungary projected GDP growth of 1.9 % in 2026 and 2.2 % in 2027, with inflation expected to rise from 1.9 % to 2.7 % over the same period due to strong wage growth. The report called for reforms to public finances, tax policy, SME competitiveness, and labour‑market opportunities for women and young people, as well as measures to boost climate‑risk resilience.

Data from the National Bank showed a shift in the housing market: after a 3 % rise in Q1 2026, house prices fell by 1.1 % in Q2, marking the first decline in the year and a slowdown in annual growth rates across all settlement types.