Equilor Investment, an independent Hungarian brokerage, raised its projection for GDP growth this year to 3.7% on Tuesday, up from its 3.4% forecast in May, while predicting annual inflation of 2.4% and a budget deficit of 2.2% of GDP.
Similarly to a recent projection of 3.8% GDP growth for 2017 by economic research institute GKI, Equilorʼs growth forecast for 2017 is still below the governmentʼs official projection of 4.1%.
Moreover, Equilorʼs 2018 forecast of 3.3% growth falls well short of the governmentʼs 4.3% prediction. The firm also sees consumer price inflation increasing to 2.8% next year.
Hungaryʼs GDP grew 3.6% in the first half of this year, the latest data show.
András Szántó, director of Equilorʼs retail business, was cited as saying by economic news portal vg.hu that although next year sees general elections in Hungary, he does not expect a major jump in the deficit in public finances. He said the budget may turn out better than planned in 2017, with a deficit of 2.2% in proportion to GDP this year, rising to 2.6% in 2018.
For its part, the government has asserted that the deficit target of 2.4% in 2017 can be safely achieved.