GKI: GDP outlook worse than expected

Analysis

Economic outlook for Hungary is negative already in the short term, according to a report by GKI Gazdaságkutató Zrt. published yesterday. GKI researchers forecast 2% GDP growth for 2015, which is 0.5 percentage points lower than the GDP figure presented to the government by the Economics Ministry last week.

The moderate growth is due to less favorable global investor sentiment, especially in the EU, and geopolitical tensions. Private sector consumption will slow down and investments will drop, while government spending will be limited due to external constraints, the researchers said. GKI emphasized the risk of Hungary’s political and potential economic isolation from the rest of the world, due to its political orientation and governing structure.

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