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GKI confirms GDP growth forecast at 2.3%, lowers inflation forecast to 0.8% in 2016

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Economic research institute GKI has confirmed its earlier GDP growth forecast of 2.3% in 2016, lowering its inflation projection to 0.8% this year from 1.7% in its December forecast, GKI Chairman-CEO András Vértes said yesterday, according to Hungarian news agency MTI.

GKIʼs March forecast sees household consumption growing 3% in 2016 while investments could decline 5%, primarily due to a fall in European Union funding. 

In spite of the positive balance indicators, the Hungarian economy will continue to lag behind other countries in the region in terms of GDP growth, Vértes said.

GKIʼs analysts estimate industrial output growth at 5.5% this year while construction sector output could decline 5%.

Vértes said GKIʼs analysts project a general government deficit of 2.3% as a percentage of the GDP in 2016, while government debt could fall to 74.5% of GDP by the end of this year.

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