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PÉNZÜGYKUTATÓ RAISES GDP GROWTH FORECAST TO 4.7%

 

Economic research company Pénzügykutató raised its projection for Hungary’s GDP growth this year to 4.7% in a forecast released. The projection was raised from 3.7% in a forecast published in March.    Research consultant Éva Várhegyi said economic growth could slow to 3.8% in 2020 as investments and consumption are expected to grow at a slower pace than this year. Negative global economic effects will be offset by development funding from the European Union and measures by the government and the central bank to boost growth, she added. Pénzügykutató sees inflation reaching 3.4% in 2019 then falling to 3.2% in 2020. Unemployment could edge down a little to around 3% while real earnings could grow by 7% this year and by 6% next year. The budget deficit may amount to 1.7% of GDP this year and fall to 0.9% in 2020 according to ESA methodology. Government debt-to-GDP ratio should fall to 67.8% by the end of the year and drop to 64.5% by the end of 2020. The official government forecasts for GDP growth are 4.0% for 2019, 4.0% for 2020 and 4.1% in 2021 based on the April update of the government’s Convergence Programme.