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GKI expects GDP growth of 3.5% in 2020

The Hungarian economy expanded last year by about 5%, one of the fastest in the EU. Overall, the October-November figures do not yet indicate a slowdown, but the deterioration in industrial expectations is a warning signal, with GDP growth of 3-3.5% expected this year, said GKI Economic Research Co., according to hvg.hu. 

The outlook for the construction industry has noticeably declined, but wage growth and retail sales have accelerated. At the same time, the balance is deteriorating, inflation has accelerated, the forint has fallen spectacularly, the general government deficit has risen, and the current account deficit has been in deficit.

The coronavirus is already influencing the global economy through its fear-inducing effect.

According to the analysis, industrial production may have increased by about 6% in 2019, while domestic sales of manufacturing increased slightly faster than exports.

This year, unstable external and slower domestic demand, nearly 10% lower order volumes than last year, and a significant drop in industrial expectations, despite the entry of some new capacity, are expected to see a lower growth of around 4.5%, hvg.hu adds.