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IMF, EBRD FORECASTS FOR HUNGARY'S GDP GROWTH

 

The International Monetary Fund (IMF) has predicted Hungary’s GDP could grow by 2.9% in 2021, the organisation said in its November 2019 Regional Economic Outlook report for Europe. The IMF said inflation could reach 3.3% in 2021. The IMF reiterated its earlier forecasts of a 4.6% Hungarian GDP growth for 2019 and a 3.3% growth in 2020 as well as an inflation prediction of 3.4% for both years.

The European Bank for Reconstruction and Development (EBRD) raised its forecast for Hungary’s GDP growth this year to 4.6% in a biannual report published on Wednesday. The forecast was raised from 3.7% in a release in May. The EBRD sees Hungary’s economic growth slowing to 3.1% in 2020, albeit a 0.2-percentage-point improvement over the forecast in the May economic outlook.

The government’s official forecast for 2019 GDP growth is 4.0% based on the spring update of Hungary’s Convergence Programme, but Finance Minister Mihály Varga said after Q2 data released at the end of August showing higher than expected growth, that the full-year figure could reach 4.3-4.4%.