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UniCredit projects 2.8% growth for next two years

Hungary’s economic growth is likely to slow slightly in comparison to last year, but the rate could reach 2.8% in both 2016 and 2017, according to UniCredit Bank’s forecast, released on Wednesday.

The forecast noted that growth is likely to slow mildly after 2015, because, compared to last year, European Union funding will be lower in 2016 and 2017, state news agency MTI reported. The forecast also said that growth in imports will likely outstrip growth in exports this year and next.

UniCredit predicted that “inflation should stay low, partially because of spillover effects from the Eurozone and the monetary policy of the National Bank of Hungary could loosen further,” according to MTI. UniCredit also predicted “stable growth in the Eurozone, low oil prices and the monetary loosening by the European Central Bank are creating favourable circumstances for growth for the whole of East-Central Europe,” MTI said.