Hungary: Fidesz to face tougher economic challenges in third term

The ruling Fidesz-KDNP coalition looks set to win another majority at the forthcoming Hungarian legislative elections, but after enjoying a period of strong GDP growth and low inflation in its current term, the macroeconomic environment is likely to be more challenging in the next term. The economy is beginning to run into capacity constraints and, unless loose fiscal and monetary policy is reined in, the Hungarian economy is at risk of overheating.