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World Bank projects 2.4% growth for Hungary in 2014

World

The Hungarian economy will grow 2.4% in 2014 and 2.5% in 2015, according to GDP projections by the World Bank.

In its latest “Global Economic Prospects” report, the Bank predicted that overall growth in Central and Eastern Europe would reach 1.7% in 2014 and 2.7% in 2015.

According to the analysis, exports to the rest of Europe have contributed to the growth in the Hungarian economy.

March saw an 11.5% increase of exports in the region as compared to a year earlier. And according to a June 5 report from the Hungarian government, industrial production expanded 10.1 percent in April, as compared with a year earlier. Most of this boost came from Hungarian automakers, who have been dramatically increasing production and who export much of what they produce.

The World Bank report said that higher external demand has clearly helped Hungary’s recovery of domestic demand and improved conditions in the labor market.

The analysis pointed out that Hungary imports Russian natural gas by way of pipelines that travel through Ukraine. If there were an interruption in that supply, and Hungary had to start buying the gas from other international sources, GDP growth would probably be curtailed to 1.4% by 2014.

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