MKB ups GDP projection as low inflation pushes real wages higher
Hungary's MKB bank has made an upward revision of its projection for consumption and GDP as a result of a rise in real wages stemming from unexpectedly low inflation, the bank told MTI on Thursday. They now project GDP growth of 0.2% this year instead of a 0.1% contraction based on improved outlook for consumption and for the construction sector. MKB, a unit of Bayerische Landesbank, reduced its forecast for the 2013 contraction of consumer spending to 0.5%, and expects consumption to increase in a quarterly comparison starting with the second quarter. Disposable income is expected to rise 1.5%-2.0%, as social support and pensions rose at a higher-than-expected 5% in nominal terms in Q1 and the higher pace could prevail in the remainder of the year. Households would save most of the increase but would also raise consumption, MKB forecast.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.