MNB expects faster economic growth in 2018


The National Bank of Hungary (MNB) said yesterday in a preliminary release of the main forecasts from its quarterly "Inflation Report," due tomorrow, that economic growth could reach 4.7% in 2018, higher than the 4.4% growth it forecast earlier.

The MNB is projecting 2.8% inflation for this year, unchanged from the September edition of its Inflation Report, according to a summary by state news agency MTI.

The central bank is sticking to its forecast for next yearʼs economic growth, projecting a rate of 3.5%, but has lowered its expected inflation rate by 0.2 of a percentage point to 2.9%.

For 2020, the central bank expects 3% inflation and 3% GDP growth, both in line with its previous forecast.

In a first set of projections, the MNB also said that inflation and GDP could both grow by 3% in 2021.

Revisions of older data meanwhile raise the GDP growth figure for 2017 by 0.1 of a percentage point to 4.1%.

A fan chart published on Tuesday indicates that the central bank expects CPI to be above the 3% mid-term target in early 2019, but to fall below the target after Q1 as inflation trends continue to be volatile. CPI is again seen nearing the 3% target by early 2020. The MNB puts the inflation target in a +/-1% tolerance band.  

The official government forecasts for GDP growth are 4.3% for 2018 and 4.1% for 2019, MTI noted.


European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Chain Bridge to be closed for traffic for 18 months City

Chain Bridge to be closed for traffic for 18 months


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.