GKI raises GDP growth forecast to 4%

EU

shutterstock

Economic research institute GKI has announced it is raising its 2019 GDP growth forecast for Hungary to 4%, up from the previously predicted 3.5% in March, according to gki.hu.  The new projection is level with the governmentʼs latest forecast for growth of 4.0%.

GKI notes that the Hungarian economy grew at a record pace of 5.3% in the first quarter, faster than the other EU member states, even Romania and Malta. The EU average stood at 1.5%, while the euro area grew by just 1.2% on average, similarly to the previous quarter.

The upgrade of the Hungarian forecasts comes as a result of the positive Q1 data, GKI says. Still the institute believes that a slowdown can be expected during the remainder of the year.

"Projections typically envisage an average GDP growth rate of above 4% in 2019," GKI adds.

GKI expects European Union transfers to continue to grow this year and puts investment growth at around 13%, up from its previous forecast of around 7%, according to state news wire MTI. Last year, investment volume in Hungary was up 17%.

ADVERTISEMENT

Poles Save on Education as Inflation Puts Pressure, Report Analysis

Poles Save on Education as Inflation Puts Pressure, Report

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma... Government

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma...

Róbert Ésik Joins EY as Partner Appointments

Róbert Ésik Joins EY as Partner

Teachers' Strike Demonstration Attracts Thousands in Capital City

Teachers' Strike Demonstration Attracts Thousands in Capital

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.