MNB projects steeper fall in investments for 2016
The National Bank of Hungary sees investments growing at a faster rate this year than earlier expected, but it projects an even steeper fall for next year in its quarterly Inflation Report published today.
The MNB raised the forecast for growth in gross fixed capital formation in 2015 to 2.7% from 2.2% in the previous report published in June.
Investments by the government and quasi-fiscal sectors using EU funds expanded, while the performance of the corporate sector producing for domestic and export markets decreased in the second quarter, and households’ investment activity remained unchanged, the MNB said.
The MNB projected investments would decline by 3.2% in 2016, even more than the 2.1% drop forecast in the previous report.
Investments showed marked growth of 11.7% in 2014 as utilization of European Union monies peaked when the 2007-2013 funding cycle wound up.
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