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