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GKI augurs 7% economic contraction in 2020

Economic research institute GKI forecasts Hungaryʼs GDP will decline 7% this year and sees the countryʼs economy fully recovering from the coronavirus crisis only in 2022, according to a report by state news wire MTI.

In a forecast released on Wednesday, GKI knocked down its projection for this yearʼs GDP decline from a range of 5-7% in a forecast released late in June.

GKI expects the economy to rebound in 2021, growing 4.5%, but it projects a return to 2019 GDP levels only in 2022.

The ESA general government deficit, relative to GDP, is set to reach 9% in 2020 and 5% in 2021, according to GKI.