Takarékbank lowers 2021 GDP growth forecast to 6.9%

Analysis

Analysts of Takarékbank and Magyar Bankholding lowered their forecast for GDP growth in 2021 to 6.9% from 8%, the lender said on Friday, according to a report by state news wire MTI,

The analysts also lowered their economic growth forecast for 2022, to 6% from 7%, mainly due to the global semiconductor shortage.

Hungary's economy expanded by 6.5%-7% last year, Gergely Gulyás, the head of the Prime Minister's Office, said at a weekly press briefing in January. The Finance Ministry's official forecast for 2021-2025, released in December, puts this year's GDP growth at 5.9%.

Takarékbank analysts put average annual inflation at 5.5% this year, accelerating from 5.1% in 2021. The central bank base rate could be raised to 4% in the first quarter and remain at that level until the end of the year, they said.

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