EBRD lowers Hungary GDP forecast for 2014
The European Bank for Reconstruction and Development (EBRD) lowered its forecast for Hungary’s GDP growth this year to 1.6% in its latest Regional Economic Prospects report. The forecast was lowered from the 1.7% rate forecast in the last such report, published in January. The new paper chalked up the decrease in forecast due to Hungary’s medium-term growth potential “remain[ing] much diminished.”
The EBRD acknowledged “surprisingly brisk” GDP growth of 2.7% in Q4 of last year, but attributed the increase as mainly driven by domestic demand supported by one-off factors, such as government-mandated utility price cuts and disbursement of European Union funding at the end of the 2007-2013 European Union budget period.
According to the report, phase two of the National Bank of Hungary (MNB)’s Funding for Growth scheme, which makes low interest-rate credit available to SMEs, had “begun only slowly” and was “unlikely to overcome the underlying lack of investment demand.”
The EBRD projects growth of 1.2% for Hungary’s GDP in 2015.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.