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Forecast: Hungary’s GDP growth to fall to 2.3%

MNB

Photo by Feng Yu / Shutterstock.com

Due to dropping investments, Hungary’s GDP growth could fall to 2.3% this year from last year’s 2.9%, research company Pénzügykutató said today in a forecast it published, according to reports.

The company expects net exports and public consumption to support GDP growth, while consumption could grow due to a rise in the wages and expansion in lending, Hungarian news agency MTI reported. 

Pénzügykutató expects Hungary’s trade surplus to exceed €10 billion with the current account surplus reaching €5.6 bln or 5.1% of GDP. External financing capacity of Hungary could remain high, according to the company, reaching approximately 7.3% of GDP.

The budget deficit could be at 2.1% of GDP this year and government debt could decrease to 74.4% of GDP helped along by lower real interest rates and economic growth, MTI said. The company foresees annual inflation to average around 0.6%.

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