Gov’t sees GDP growth staying well over 3% in mid-term



Hungaryʼs government expects economic growth to stay well above 3% in the mid-term, even after peaking at 4.3% next year, an update of the countryʼs Convergence program released yesterday shows, according to Hungarian news service MTI.

The government projects GDP growth will accelerate from 4.1% this year to 4.3% in 2018. Afterward, it will decelerate to 3.8% in 2019, 3.7% in 2020 and 3.6% in 2021, which is the end of the forecast period in the updated program submitted to Brussels on Tuesday.

The government noted in the report that GDP and consumption have reached pre-crisis levels, but investments and householdsʼ purchases of consumer durables are still below levels in 2008, leaving room for growth. 

The projections in the program update show growth of household consumption expenditures peaking at 6.1% this year before falling to 5.4% in 2018, but remaining higher than 4% over the forecast horizon.

Growth of public consumption expenditures is set to peak at a moderate 1% in 2018, before falling to 0.7% in 2019 and stagnating in the following two years.

The government projects investment growth will peak at 12.9% next year then fall to 7.8% in 2019. It will remain over 6% in the following two years, according to the forecast.

The government puts export growth at more than 6% from 2018 until the forecast horizon. It projects import growth will peak at 8.2% next year, but remain around 7% till 2021.

The general government deficit is seen narrowing from 2.4% of GDP this year and next year to 1.8% in 2019, 1.5% in 2020 and just 1.2% in 2021.


Banking Assoc Delivers Negative Assessment of Gov't Measures Banking

Banking Assoc Delivers Negative Assessment of Gov't Measures

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Praktiker Sales Climb 13% in 2022 Retail

Praktiker Sales Climb 13% in 2022

BKK Steps up Airport Shuttle Bus Service City

BKK Steps up Airport Shuttle Bus Service


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.