EC raises Hungary 2021 GDP growth forecast to 6.3%

Analysis

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.

ADVERTISEMENT

289 new COVID cases registered in Hungary Figures

289 new COVID cases registered in Hungary

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Martina Cifer joins Avison Young Hungary Appointments

Martina Cifer joins Avison Young Hungary

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

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.