EC raises Hungary 2021 GDP growth forecast to 6.3%


The European Commission projects Hungary's GDP will climb 6.3% this year in a summer economic forecast published on Wednesday.

The projection was raised from 5% in the EC's spring forecast released in May.

"Growth is set to be driven by the gradual recovery of consumer demand for services, high investment activity supported by EU funds and accommodative fiscal policies," the EC said.

It added that exports should also make a "significant contribution", supported by a favorable external environment and the expected pickup of tourism within the EU.

The EC noted a proposed personal income tax rebate for families raising children among upside risks to the forecast.

The EC put Hungary's GDP growth in 2022 at 5%.

The summer forecast projects annual average CPI will climb to 4.4% in 2021 then fall to 3.3% in 2022.

The EC acknowledged that fuel prices and excise tax increases had caused spikes in CPI in the spring but said the weaker forint and repricing of some services after the reopening of the economy may continue to add to inflation in the coming months.


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