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May 12, 2017

European Commission raises Hungary's GDP growth forecast to 3.6 percent

The EC’s projections are below the government’s forecasts for GDP growth of 4.1 percent in 2017 and 4.3 percent in 2018

The European Commission has raised its projections for Hungary's GDP growth to 3.6 percent in 2017 and 3.5 percent for 2018.

According to MTI, the projections for 2017 and 2018 were raised from 3.5 percent and 3.2 percent, respectively. The EC’s projections are below the government’s forecasts for GDP growth of 4.1 percent in 2017 and 4.3 percent in 2018.

The EC said growth this year and next would be bolstered by a pickup in investments, lifted by European Union funded projects, added capacity in the manufacturing sector and higher household consumption, helped by an upturn in retail lending and positive labour market developments.

The EC noted the benefit to growth of government-initiated measures reducing corporate tax and payroll tax, while raising the minimum wage over several years starting in 2017.