Government expects 3% GDP growth in 2019

Banking

The Hungarian government expects GDP to grow by 3% in 2019, according to a medium-term outlook supplementing the 2016 budget bill submitted to Parliament on Friday. The outlook is calculated with an inflation rate of 3% and a budget deficit of 1.5% of GDP in 2019.

The document reveals that the corporate tax will remain a multi-bracket tax between 2017 and 2019 and the personal income tax rate will stay at 15%. The healthcare contribution of tobacco companies will be maintained, and the bank levy will be cut by a further HUF 22 bln from 2017, but will remain unchanged at that level in 2018 and 2019.

The government says plans to raise tax credits for newlyweds and two-child families gradually during the 2017-2019 period. The fostered work scheme, where the unemployed get less then minimum wage for jobs assigned by the government, will also be boosted, the document shows.

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