...Institutional and economic profile Flexibility and Performance Profile Growth has peaked in the first quarter of 2019. + Strong demand and so far resilient exports have driven Hungary's economic expansion. + We expect growth to decelerate during the remainder of the year under the weight of external demand and owing to the effects of structural challenges, including a tight labor market. + Challenging relations with the EU are likely to persist, putting at risk a portion of the EU's generous budgetary transfers to Hungary. Despite an eroding current account, external deleveraging will continue because the government intends to tighten fiscal policies from 2020. + Surging domestic demand and a weaker external environment will likely thin current account surpluses to below 1% of GDP. + Despite fiscal efforts, additional consolidation may prove challenging, with net government debt unlikely to drop below 60% of GDP. + Inflation peaked at 3.9% in the second quarter of 2019, but will likely...
