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GKI knocks down 2022 GDP growth forecast

Analysis

Photo by Feng Yu / Shutterstock.com

Economic research institute GKI has cut its forecast for Hungary's GDP growth this year to 2.5-3% from 4.5-5% in a forecast issued in December, according to a report by state news wire MTI.

GKI said it cut the forecast because of "Hungary's proximity to Ukraine, the uncertainty and probable delay in the arrival of EU transfers, overdependency on Russia and the hard-hit automotive industry, and extraordinarily high inflation and its dampening effect on consumption".

The institute acknowledged the economy would probably expand at a faster clip than the EU average.

GKI projects Hungary's industrial sector will grow just 2.5%. It puts domestic consumption growth at 2.2%.

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