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World Bank raises Hungary GDP growth forecasts

The World Bank Group puts Hungaryʼs real-term GDP growth at 3.9% in 2017, and projects the countryʼs GDP to grow by 3.8% this year. However, it forecasts the rate of growth to slow to 3.1% in 2019 and to 2.9% in 2020, according to the fresh issue of the bankʼs Global Economic Prospects report.

The World Bank headquarters building in Washington, D.C. (photo World Bank).

The World Bank raised its 2017 forecast by 0.2 of a percentage point, while upping its 2018 and 2019 forecasts by 0.1 of a percentage point compared to its June 2017 projections. The bank revised its forecast for most countries in Eastern Europe and Central Asia upward from the June report, according to Hungarian news agency MTI.

The upward revisions made for Bulgaria, Poland and Romania were bigger than those made for Hungary. The World Bank raised its GDP growth forecast for the four countries by 1.2 percentage points on average to 4.7% for 2017, by 0.7 of a percentage point to 4.0% for 2018, and by 0.3 of a percentage point to 3.5% in 2019. The average forecast for 2020 is 3.5%. The World Bank projects growth rates in the other three countries to exceed that of Hungary in 2018-2020.

In the fresh report, the international institution raised its forecast for global growth this year by 0.2 of a percentage point to 3.1%, up from 2.9% projected last June. It expects global growth of 3% next year and 2.9% in 2020.

The fresh World Bank forecasts for Hungary are still below the December 2017 projections of the Hungarian Ministry for National Economy, MTI noted. The ministry forecast GDP growth of 4.1% in 2017, projected to rise to 4.3% in 2018, before slowing to 3.8% in 2019 and 3.7% in 2020.