A significant reduction in output at the Paks Nuclear Power Plant poses an immediate threat to Hungary's economic growth, according to a new assessment from local economists.
The disruption is expected to ripple through the energy market and soon appear in industrial production statistics, potentially derailing GDP targets for the year.
5% annualized pace in the second quarter, investors have been scrutinizing underlying drivers for signs of resilience.
Pásztor Szabolcs, research director at the Oeconomus Economic Research Foundation, told Economx that the situation is not merely an energy sector issue but a broader macroeconomic risk.
He warned that manufacturers may need to resort to overtime shifts to compensate for power constraints, highlighting the narrow window remaining to restart economic momentum before the GDP figures are finalized.
The concern comes as global growth data remains mixed.
While the US economy expanded at a 1.5% annualized pace in the second quarter, investors have been scrutinizing underlying drivers for signs of resilience.