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Pénzügykutató forecasts 3.8% GDP growth in 2017, 2018

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Pénzügykutató expects GDP growth in Hungary to be around 3.8% both this year and the next, the financial research firm said in a forecast released on Wednesday, reported by state news wire MTI.

The forecasts are under the governmentʼs official projections for GDP growth of 4.1% this year and 4.3% next year.

Economic growth is supported by a global pickup, faster utilization of EU funding, looser fiscal policy, wage policy, and stimulus-providing monetary policy, said Pénzügykutató researcher Éva Várhegyi.

Investments should jump 26% this year, albeit from a low base. Real wages could grow by 10% in 2017 and 6% next year, she added.

Pénzügykutató sees the unemployment rate falling to 4% in 2018.

Average annual inflation is expected to reach 2.4% in 2017 and 2.5% in 2018, still under the 3% mid-term target of the National Bank of Hungary (MNB), notes the research firm.

Exports are set to see respective rises of 9.5% and 6% this year and the next, while Pénzügykutató puts import growth at 12% and 8% for the next two years, respectively.

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