The European Commission has raised its projection for Hungary’s GDP growth to 3.7 percent this year, from 3.4 percent in a quarterly forecast released on Tuesday.
According to MTI, the EC also raised the forecast for next year’s growth to 2.8 percent from 2.6 percent. Hungary‘s updated Convergence Programme puts growth in both years at 4.0 percent.
The EC acknowledged Hungary’s economy grew at a pace of 4.9 percent in 2018, driven by construction investment, but said the expansion is “nearing its limits”.
“Growth is set to lose momentum as capacity constraints limit the further expansion of domestic demand, while external demand remains subdued,” the EC said.