Hungary's Economy Hit by Heatwave Shutdowns and Poultry Export Challenges

A severe heatwave forced Hungarian factories to curtail production, raising electricity imports to over 46% of total supply and pushing the share toward 50%. Analysts estimate the slowdown will shave 0.2‑0.4 percentage points off annual GDP growth, with larger losses possible if the situation persists. The trade balance is expected to weaken as the electricity‑trade deficit widens, while the overall commercial surplus remains but may contract.

At the same time, Hungary's poultry sector faces mixed signals. Poland’s ongoing animal‑health problems and suspension of EU data reporting have disrupted export routes for broiler and turkey producers, creating new opportunities for Hungarian exporters. However, a roughly 10% appreciation of the forint erodes price competitiveness, cutting revenues for export‑oriented farms. Capacity constraints, such as the delayed reconstruction of Tranzit’s Nyírbátor plant, add further pressure on the industry.