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Ministry, central bank expect 4% GDP growth in 2017

MNB

Both the Ministry for National Economy and the National Bank of Hungary (MNB) expect GDP growth of around 4% in 2017, according to statements made recently by representatives of the two institutions. The central bank also forecasts growing investments.

Speaking at an economic forum hosted in Vienna by the Euromoney financial magazine, Ágnes Hornung, minister of state for financial affairs at the Ministry for National Economy, said that GDP growth in 2017 may have reached 4.1%, which she said will accelerate to 4.3% this year, business news portal vg.hu reported.

According to the ministry forecast, the state deficit is expected to be 2% of GDP, compared to the government forecast previously set at 2.4%. The lower deficit forecast is attributed to the six-year salary agreement signed between employers and employees, which has resulted in higher tax revenues.

Barnabás Virág, executive director of the MNB, said that central bank experts expect GDP growth of around 4% and an increase in investments above 20% for 2017, vg.hu reported.

Virág added that a high rate of investments is also expected for this year, while exports and household consumption are seen as fuels for GDP growth this year. Inflation will stay at around 2% in the foreseeable future, he added.

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