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Takarékbank puts 2016 GDP growth at 2.1%

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Analysts at Takarékbank project that Hungaryʼs economy will grow 2.1% this year, a quarterly forecast by the lender shows, Hungarian news agency MTI reported today.

The projection is under the governmentʼs forecast for 2.5% GDP growth this year. 

Although growth outlooks abroad failed to improve in the first quarter, the external environment remains favorable for Hungary, Takarékbank said. Risk of a possible exit by the United Kingdom from the European Union remains high, it added. 

Takarékbank puts next yearʼs GDP growth rate at 3.3%, lifted by an increase in investments boosted by accelerated drawdowns of European Union funding and household investments. 

The government assumes GDP growth of 3.1% for 2017. 

Takarékbank sees average annual inflation picking up to 0.7% in 2016 and 2.1% in 2017.

It projects the unemployment rate will fall more than a full percentage point this year from last yearʼs 6.8% and it forecasts a further decline to 5.3% in 2017.

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