Economic research institute GKI has announced it is raising its 2019 GDP growth forecast for Hungary to 4%, up from the previously predicted 3.5% in March, according to gki.hu. The new projection is level with the governmentʼs latest forecast for growth of 4.0%.
GKI notes that the Hungarian economy grew at a record pace of 5.3% in the first quarter, faster than the other EU member states, even Romania and Malta. The EU average stood at 1.5%, while the euro area grew by just 1.2% on average, similarly to the previous quarter.
The upgrade of the Hungarian forecasts comes as a result of the positive Q1 data, GKI says. Still the institute believes that a slowdown can be expected during the remainder of the year.
"Projections typically envisage an average GDP growth rate of above 4% in 2019," GKI adds.
GKI expects European Union transfers to continue to grow this year and puts investment growth at around 13%, up from its previous forecast of around 7%, according to state news wire MTI. Last year, investment volume in Hungary was up 17%.