GDP growth in 2023 could slow down to 3.8%, he added.
Economic growth will be driven by domestic consumption in the first half of this year, and later on, with the recovery of supply chains, external demand could also have a positive impact on the data, Varga said.
Equilor's analysts expect inflation to come close to 5% at the end of this year, with the central bank's base rate raised to 4.9% by then, and the cycle of tightening could end with another 30-basis-point increase next year, he said.
The government's GDP growth projection for this year is 5.9%.
Average annual inflation could decelerate to 4.8% in 2022 and 3.8% in 2023, Varga said.
He said the National Bank of Hungary (MNB) could continue raising the one-week deposit rate by 30 basis points after this week's 50-basis-point base rate hike, and the one-week deposit rate could converge with the base rate by mid-2022.
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