IMF raises GDP growth forecasts for Hungary

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The International Monetary Fund (IMF) raised its projection for Hungaryʼs GDP growth this year by 0.4 of a percentage point to 3.8% in its fresh World Economic Outlook published on Tuesday. The IMF projects growth slowing to 3% in 2019, although this projection, too, was raised by 0.2 of a percentage point. 

The IMFʼs 2018 projection was raised from 3.4% in a forecast released last November. Hungaryʼs government projects GDP growth of 4.3% this year, noted state news wire MTI.

Following annual average inflation of 2.4% in 2017, the IMF projects inflation rising to 2.7% in 2018, and to 3.3% in 2019. The latter two forecasts represent a 0.5 of a percentage point decrease and 0.3 of a percentage point increase on the November forecasts, respectively.

The current account surplus is set to narrow to 2.5% of GDP in 2018 (compared to 4.2% in the earlier forecast), and to 2.4% in 2019 (down from the 3.2% forecast in November), says the IMF. This compares to the figure of 3.6% of GDP measured in 2017 (adjusted from 4.8%).

The organization sees unemployment falling to 3.8% this year, and to 3.5% in 2019, both significant revisions of the 4.3% figure forecast for both years in November.

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