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Jan 17, 2018

Hungary predicts GDP growth of around 4.3 percent in 2018

Ágnes Hornung, minister of state for Financial Affairs at the Ministry for National Economy, said that based on early figures GDP growth in 2017 was close to 4.1 percent, which will accelerate to 4.3 percent in 2018

Hungary’s ministry for National Economy and the National Bank of Hungary (MNB) have predicted GDP growth of around 4 percent in 2017, it has been revealed.

According to the Budapest Business Journal today, recent statements made by representatives of both institutions forecast a healthy growth rate.

Ágnes Hornung, minister of state for Financial Affairs at the Ministry for National Economy, said that based on early figures GDP growth in 2017 was close to 4.1 percent, which will accelerate to 4.3 percent in 2018.

According to the ministry’s forecast, the state deficit is expected to be 2 percent of GDP, lower than the 2.4 percent previously expected. The lower deficit forecast is attributed to the six-year wage agreement, which has resulted in higher tax revenues.

While Barnabás Virág, executive director of the MNB, said that central bank experts expect GDP growth of around 4 percent and an increase in investments above 20 percent for 2017. Virág added that inflation will stay at around 2 percent in the foreseeable future.