EBRD raises Hungary GDP growth forecasts

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The European Bank for Reconstruction and Development (EBRD) raised its forecast for Hungaryʼs GDP growth this year to 3.8% on Tuesday, up from its forecast of 3.0% in May, Hungarian news agency MTI reported. The EBRD also raised its forecast for next yearʼs growth from 3.0% to 3.4%.   

"The near-term economic outlook has improved in Hungary on the back of cuts in the rates of corporate income tax and social security contributions as well as increased minimum wages," the EBRD said.

The EBRD noted in its Regional Economic Prospects report that Hungaryʼs GDP growth had accelerated to 3.6% year-on-year in the first half of 2017, driven by a rebound in public investment and robust private consumption.

Accelerated absorption of EU funding and recovering credit to the private sector are set to support growth over the short term, the EBRD report added.

Hungaryʼs government projects GDP growth of 4.1% for 2017 and 4.3% for 2018, MTI noted.

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