GKI raises 2022 GDP growth forecast 

Analysis

Photo by Feng Yu / Shutterstock.com

Economic research institute GKI has raised its forecast for Hungary's GDP growth this year to 3.5-4% from 2.5-3% in a forecast issued in March, according to a report by state news wire MTI.

It lowered its forecast for next year's economic growth to 2.5-3% from 3.5-4%.

GKI said it changed the forecasts because of "higher-than-expected first-quarter growth, more extensive austerity measures than previously expected and faster-than-expected inflation, the deteriorating global political situation and tensions in the relations with the European Union".

GKI projects domestic consumption will grow 4% as household consumption increases 5.5% and investment growth reaches 2%. 

It puts the general government deficit at 5.9% of GDP. However, reaching an agreement on EU transfers is a precondition for achieving the 4.9% deficit target.

It sees inflation rising to 10.2%.

ADVERTISEMENT

Romanian Salary up in June, Under Inflation Figures

Romanian Salary up in June, Under Inflation

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim... City

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim...

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.