GKI: Hungaryʼs growth rate could slow to 2.0%

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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.

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