The landslide electoral result of April 12 will likely bring major changes to the Hungarian economy, but the effects may well not be visible for another one or two years. As ever for such an open economy, much will also depend on developments in the international markets. Inflation still influences prices and wage demands. The recent World Economic Outlook report by the International Monetary Fund projects that Hungary’s GDP growth will reach 1.7% in 2026 and 2% next year. The IMF puts average annual inflation at 3.8% in 2026, slowing, but not by much, to 3.5% in 2027. The unemployment rate will also improve, according to the»IMF, falling from 4.2% to 4% in 2027. The figures released by the Hungarian economic research institute Kopint-Tárki are slightly more optimistic. They expect inflation to average 3.5% this year, although the institute’s head, Éva Palócz, warned that inflation risks are increasing. Still, Kopint-Tárki’s...

Having been entrusted with an unprecedented mandate, the Tisza Party now bears a historic responsibility for Hungary and its nation, President Tamás Sulyok told the inaugural session of parliament on Saturday. The new government must concern itself with “advancing and strengthening the country’s and the nation’s communities as well as ensuring their ability to withstand challenges,” the president said, according to state news agency MTI. The president asked for constructive cooperation on issues that could “facilitate the nation’s progress and bolster peace and the tranquility of public life,” and proposed that the National Assembly elect Péter Magyar as prime minister. Earlier, Hungary’s new parliament was ceremonially formed when the lawmakers elected in the April 12 general election took their oath of office, officially concluding the mandate of the Fidesz-Christian Democrat government formed in 2022. Ahead of the oath-taking, parliament had unanimously certified the mandates of all lawmakers and representatives of...