GKI raises latest 2018 growth forecast to 4.5%
Economic research institute GKI has raised its projection for this yearʼs GDP growth to 4.5%, up from 4.2% in an earlier forecast. Hungaryʼs GDP was up 4.7% year-on-year in Q1-Q3 2018, according to preliminary data released by the Central Statistical Office (KSH) in November.
GKI noted that fourth-quarter GDP is likely to slow to around 4%, down from 4.8% in Q3.
GKI left its projection for next yearʼs economic growth unchanged at 3.2%, citing a reduction in European Union transfers, uncertainty surrounding the direction of the global economy, a continued deterioration of the external and internal balances, rising inflation, and little change to the countryʼs competitiveness.
Following the release of third-quarter growth data in November, Minister of Finance Mihály Varga noted that the adjusted Q3 growth rate was two-and-a-half times the European Union average and the second highest among all Member States.
Varga recalled that the European Commission recently raised its projection for Hungarian growth to 4.3%, so that by now both domestic and international organizations are almost unanimous in predicting growth of over 4% in 2018, in line with the Hungarian governmentʼs own expectation.
The KSH will release a second, more detailed estimate of GDP growth in the third quarter of 2018 and the year to date this Wednesday, December 5.
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.