GKI forecasts 5.7% economic contraction in 2020
Economic research institute GKI projects Hungaryʼs economy will contract 5.7% this year, if there is no second wave of coronavirus infections, state news wire MTI reports, citing a forecast issued today.
In GKIʼs previous forecast, released in March, shortly after a state of emergency was declared to contain the spread of the novel coronavirus, the institute had projected declines in GDP of 3% and 7%, based on different scenarios.
In the latest forecast, GKI projects a 10% drop in industrial output and a 4% decline in domestic consumption.
It projects exports, of both goods and services, will fall by 15%, while imports drop 13%.
The forecast sees the jobless rate reaching 6%.
GKI projects the general government deficit, relative to GDP, will swell to 5% in 2020.
The institute says that Hungaryʼs economy may return to 2019 levels perhaps only in 2022.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.