Hungarian economy continues worsening as Orban’s fealty toward Moscow has its price

Hungary’s economy is faltering once again—and this time, not even Viktor Orban’s usual scapegoats can mask the rot. Having looted Hungary’s economy into its position of the 4th poorest nation in Europe, the old kleptocrat is now overseeing a a GDP that contracted by 0.2% in Q1 2025, defying government promises of a strong post-recession rebound. As the rest of Central Europe shows signs of recovery—Czechia grew 0.5%—Hungary’s stagnation stands out as self-inflicted.

The numbers are more than economic data—they’re a reflection of Orban’s loyalty to Moscow. For years, the Hungarian prime minister has traded EU credibility for Kremlin favors. While Europe mobilizes to support Ukraine and defend democracy, Orban sides with Putin, blocking aid packages, parroting Russian propaganda, and deepening ties with China. Hungary’s economic future is now shackled to autocracies in decline.

Orban’s kleptocratic regime, enriched by EU funds and sustained by disinformation, is running out of excuses. His own Economy Ministry blamed the European Union for Hungary’s contraction—claiming Brussels prioritizes Ukraine over member states. But analysts say the truth is simpler: structural weakness, rampant corruption, and reckless pre-election spending have hollowed out the economy.

Orban’s latest moves—tax giveaways to pensioners, budget overspending, and slashed revenue targets—are a desperate bid to stay in power as the opposition surges in the polls. But they’re also the final symptoms of a captured state bleeding public money to maintain an illusion of prosperity.

S&P has already downgraded Hungary’s outlook to negative. The forint is wobbling. Investors are nervous. And Putin’s most loyal European proxy is out of tools.

Hungary isn’t just facing an economic crisis. It’s living through the inevitable collapse of a regime built on servitude to Moscow—and it’s the Hungarian people who are paying the price.