IMF lowers Hungaryʼs 2016 GDP growth forecast to 2%

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The International Monetary Fund has lowered its projection for economic growth in Hungary this year to 2.0% in its fresh World Economic Outlook published Tuesday, down from 2.3% in the previous outlook released in April, Hungarian news agency MTI reports today.

The projection is under the governmentʼs official forecast for 2.5% growth. 

Hungaryʼs GDP grew 1.9% in the first half, the latest data from the Hungarian Central Statistical Office (KSH) show. 

The IMF projects Hungaryʼs GDP growth rate will pick up to 2.5% in 2017, unchanged from the previous forecast. 

The government targets 3.1% economic growth next year. 

“Hungary is estimated to be growing faster than potential and is projected to return to more sustainable rates of growth over the medium term,” the IMF noted in the report. 

The IMF forecasts consumer prices will edge up 0.4% this year. The forecast was lowered from 0.5% in April. 

Hungaryʼs current account surplus is seen reaching 4.9% of GDP this year, down from 5.4% in the previous forecast. The surplus is expected to narrow to 4.6% of GDP in 2017. 

The IMF projects Hungaryʼs unemployment rate will fall from 6.0% this year to 5.8% in 2017. In April, the IMF projected the unemployment rate would fall to 6.7% this year.

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