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GKI raises 2019 growth forecast to 4.3%

Economic research institute GKI has raised its projection for this yearʼs GDP growth to 4.3%, up from 4.0% in a forecast released in June, state news wire MTI reported.

Hungaryʼs economic growth probably slowed down in the second quarter less than previously expected from the exceptionally strong growth of the first quarter, GKI said, adding that the weather seems to have supported the farm sector more than before.

Because of last yearʼs high level, the investment-boosting effect of EU transfers is already declining, GKI noted, adding that the rise in household purchasing power is slowing down as well. In addition, the EUʼs business confidence index is at a low of almost three years, the Hungarian index stands at a two-and-a-half-year low, and the German industrial confidence index is at a five-year low, GKI added.