EBRD Forecasts Hungary GDP Will Edge up 0.4% in 2023
The European Bank for Reconstruction and Development (EBRD) forecasts Hungary's economy will grow 0.4% this year in its latest Regional Economic Prospects, according to a report by state news wire MTI.
In an update of the Regional Economic Prospects released in February, the EBRD had forecast Hungary's GDP would fall by 0.2%.
Hungary's government calculates with GDP growth of 1.5% this year.
The EBRD said GDP growth would slow this year, from 4.6% in 2022, as household purchasing power declines amid high inflation and government consumption shrinks due to budgetary restraint. FDI inflows and other private investments are expected to support GDP growth this year, "but EU funds, especially those from the RRF, will likely reach Hungary only in late 2023 or 2024", it added.
The EBRD sees Hungary's GDP growth picking up to 3.5% in 2024 as external demand improves and real incomes recover.
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.