GKI: Hungaryʼs growth rate could slow to 2.0%
GKI expects Hungaryʼs GDP growth to slow to 2.0% next year from an anticipated 2.7% in 2015, the economic research institute said in its latest quarterly forecast, published yesterday.
Growth is set to decelerate on a temporary fall in European Union funding, a slower rise in domestic consumption and falling demand for exports, GKI chairman András Vértes said at the release of the fresh forecast.
GKI expects household consumption to rise just 1.5% next year, after climbing an expected 2.5% in 2015. It sees investments dropping 5% after stagnating this year. GKI projects the general government deficit will reach 2.6% of GDP this year and 2.3% next year, over the respective 2.4% and 2.0% government targets.
It explained that the overshoots would depend on government measures to reduce state debt in an effort to avoid an excessive deficit procedure.
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.