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Convergence Program puts growth at 4% in near future

Hungaryʼs GDP growth is set to stay around 4% in the coming years, according to the countryʼs latest annual Convergence Program posted on the website of the European Commission, state news wire MTI reports.

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The program puts GDP growth at 4% in 2019 and 2020, 4.1% in 2021, 4.2% in 2022 and 4% in 2023. The projections for 2019-2022 vary no more than 0.1 percentage point from those in the previous yearʼs convergence report, MTI reports.

Household expenditures on consumption are seen climbing 4.6% in 2019, 4.7% in 2020, 4.6% in 2021, 4.5% in 2022 and 4.5% in 2023.

Gross fixed capital formation is set to grow 10.3% in 2019, before slowing to 3.8% in 2020, 3.5% in 2021, 4.6% in 2022 and 3.1% in 2023.

The program projects inflation, harmonised for better comparison with other European Union member states, will average 2.7% in 2019 and 2.8% in 2020, before levelling out at the National Bank of Hungaryʼs (MNB) mid-term 3% target in 2021-2023.

Hungaryʼs general government deficit, relative to GDP, is set to narrow from 1.8% in 2019 to 1.5% in 2020, 1.2% in 2021, 0.5% in 2022 and 0% in 2023.

The program puts Hungaryʼs state debt as a percentage of GDP on a continued course of decline from 69.2% in 2019 to 66.7% in 2020, 62.8% in 2021, 59.3% in 2022 and 55.9% in 2023.

Hungaryʼs constitution requires the year-end debt-to-GDP ratio to fall each year until it reaches 50%.