porfolio.hu
The Hungarian government paid out HUF 1,160 billion in EU funding to grant winners in 2019 according to Portfolio's calculations, the lowest annual amount since 2012 and about 30% below the target. Combined with the expected delay in the 2021-2027 EU funding period, this in theory foreshadows substantially slower GDP growth between 2020 and 2022, but Portfolio's calculations paint a completely different picture. The use of EU funds in Hungary could remain stable at a high level, which may explain why the government is sticking to its nearly 4% GDP growth forecast. It is possible that a lower rate of disbursements in 2019 was a deliberate move in service of more balanced medium-term growth. Full story
