ADVERTISEMENT

Official: Economic growth expected to reach 3% in 2015

MNB

Economic growth in Hungary could be near 3% of GDP this year and could be around 2-2.5% next year, Fiscal Council head Árpád Kovács said yesterday.

According to Kovács, the government deficit is low and the debt burden from interest rates has decreased due to the joint efforts of the government and the National Bank of Hungary (MNB).

The low inflation environment makes it possible for the MNB to lower its base rate further and to have a loose monetary policy.

Kovács noted that there is little appetite among companies for credit. Companies are not even willing to take low risks and this is impeding economic growth.

According to Kovács, the MNB has calculated that corporate lending would need to expand by 5-10%, or around HUF 250-400 billion annually, but this is a long stretch because of restricted demand.

Investment Performance Falls Significantly in Q1 Figures

Investment Performance Falls Significantly in Q1

EC Advances Infringement Procedure Over Hungary's Sovereignt... EU

EC Advances Infringement Procedure Over Hungary's Sovereignt...

New RTL HQ Gets Class “A” Energy Certificate Following Renov... Sustainability

New RTL HQ Gets Class “A” Energy Certificate Following Renov...

White Raven Skybar, Laurent-Perrier Champagnes Enter Special... Drinks

White Raven Skybar, Laurent-Perrier Champagnes Enter Special...

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.