IMF raises Hungary 2015 growth forecast

Analysis

The International Monetary Fund raised its projection for economic growth in Hungary this year to 2.7% in its fresh World Economic Outlook published yesterday from the 2.3% forecast of last October. Economic growth remained strong in Hungary, but is expected to decline this year on account of lower investment growth and less supportive fiscal conditions, the IMF said. 

Private consumptions was the key growth driver amid improving labor market conditions, it added. The IMF forecasts consumer prices will remain unchanged in 2015. In October it expected prices to rise by 2.3% this year.

With output still below potential and persistent disinflationary pressures, Hungary has scope for further cautious monetary policy easing, the IMF said. Elevated public debt and high fiscal deficits however highlight the need for fiscal consolidation, including via spending restraint, it added.

For 2015, the IMF puts Hungaryʼs current-account surplus at 4.8% and the unemployment rate at 7.6%. In the previous World Economic Outlook issue, the 2015 c/a surplus was projected at 2.0% and the unemployment rate at 7.8%.

Number of Thefts in Capital Edges Higher in 2023 Figures

Number of Thefts in Capital Edges Higher in 2023

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Hungary Labor Costs 3rd-lowest in EU HR

Hungary Labor Costs 3rd-lowest in EU

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

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.