Finance Ministry forecasts 7-9 pc / GDP deficit in 2020

Hungary's budget is expected to post a shortfall of 7-9 percent of GDP in 2020, in view of the slower-than-expected recovery in the second quarter and planned measures to protect the economy, the finance ministry said on Monday. Although the economic fallout due to the coronavirus epidemic was not as serious as that in the rest of the European Union, Hungary's economy shrank substantially, by 13.6 percent, in the second quarter of 2020, the statement said. The decline combined with tax cuts have set the economy back by 1,400 billion forints (EUR 4.0bn), it said. Due to the government's economy and job-protection measures, the cash flow-based budget deficit came close to 2,165 billion forints at the end of July, the statement said.