BUDAPEST: Hungary's economy could shrink by around 5pc this year, more than the government's previous forecast for 3pc recession, Finance Minister Mihaly Varga told state radio on Thursday.

Varga said recovery in some segments of the economy like tourism or the entertainment industry will be much slower than earlier anticipated and there was also a chance for a second wave of the coronavirus pandemic.

"Our earlier forecast of minus 3pc (for GDP) looks very optimistic, I think we can expect a worse figure, a recession of around 5pc," Varga said, adding that the ministry would revise its earlier GDP projection.