EBRD revises Hungary GDP growth forecast upward

MNB

In step with analysts at JP Morgan, the European Bank for Reconstruction and Development (EBRD) raised its forecast for GDP growth in Hungary next year to 1.2% in a report published today, up from 0.9% in a projection released in May.

The European Bank for Reconstruction and Development 

The government’s target for GDP growth next year is 2.0%.

The EBRD puts GDP growth in 2013 at 0.5%. In May, it forecast a 0.8% contraction.

The EBRD noted Hungary’s GDP grew for the second quarter in Q2 2013, but attributed the improvement mainly to public infrastructure spending.

In the medium term, contracting lending as well as growing uncertainty for investors in utilities and other sectors will continue to undermine Hungary’s trend growth rate, the EBRD said.

The EBRD acknowledged the National Bank of Hungary’s zero-interest lending scheme for SMEs (a.k.a. “Funding For Growth”) but said it was “unlikely to be effective unless more investor-friendly policies support loan demand.”

ADVERTISEMENT

GKI raises 2022 GDP growth forecast  Analysis

GKI raises 2022 GDP growth forecast 

Lawmakers postpone expanded data provision for tourism secto... Parliament

Lawmakers postpone expanded data provision for tourism secto...

Dóra Petrányi to co-head CMS Tech, Media, and Comms Group Appointments

Dóra Petrányi to co-head CMS Tech, Media, and Comms Group

Budapest overhauls public parking system City

Budapest overhauls public parking system

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.