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Index – economy – will not shake the Hungarian economy if the United Kingdom withdraws by agreement

If the United Kingdom withdraws from the European Union by agreement, the negative economic impact of leaving Hungary on the economy will be minimal.

British Ambassador to Budapest Paul Fox told the newspaper that many joint operations are expected between Hungary and the UK in the future, in addition to energy and cars, in decarbonizing. He added that cooperation on artificial intelligence and environmental mobility is also possible after Brexit.

Zoltán Török, chief analyst at Raiffeisen Bank, confirmed that according to research conducted in 2016, the departure of the British could reduce Hungary’s GDP growth by 0.2-0.3 percentage points in the year after the actual exit, if they leave the European Union by agreement.

Hungary has relatively closer relations with the UK than in the region, so Brexit may have a slightly greater impact on us than other countries in the region.

However, given the coronavirus crisis, the economic impact of the UK exit could be on the verge of getting wrong, slowing GDP growth by just 0.1 percentage point.

Zoltan Turok noted that from a macroeconomic standpoint, the impact of Brexit is almost negligible, but it can cause major problems for the companies involved.

Paul Fox explained that Hungary is the UK’s third largest export partner in Central and Eastern Europe, with trade in goods and services totaling £ 5.7 billion (today’s exchange rate is $ 2,246 billion) over the past four quarters. .

There are still points of contention

British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen also believe that the terms of the agreement defining the terms of the future relationship between the United Kingdom and the European Union still do not exist.

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The connection, referred to by Downing Street, also indicates that the parties are currently discussing in person disagreements in Brussels on the three most contentious issues: conditions for equal competition, modalities for enforcement of the agreement and regulation of fisheries.