Kopint-Tárki projects GDP growth of 3.2% in 2015
Kopint-Tárki Institute for Economic Research Co. expects Hungaryʼs economy to grow by 3.2% this year as a result of higher wages and increased employment raising household consumption by 3-3.5%; this projection is over the governmentʼs official 2.5% forecast, although National Economy Minister Mihály Varga recently said this yearʼs growth rate could reach 2.8-2.9%.
The institute puts next yearʼs GDP growth at 2.2%, while it predicts the National Bank of Hungary (MNB) to continue its recently relaunched easing cycle, which could lead to the base rate edging down to 1.50% from the current 1.95%. According to the institute’s predictions, industrial output will rise 6.5% this year and 5.0% next year, while the construction sector could expand by 2-3%. The unemployment rate is expected to fall from last year’s 7.7% to 7.2% in 2015 and 6.8% in 2016.
According to Kopint-Tárki CEO Éva Palócz the impact of restrictions on Sunday retail hours, especially on the catering industry, was a downside risk, and she added that Hungaryʼs recent brokerage scandals could also erode confidence and cause households to remain cautious.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.