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Jan 04, 2017

Hungary's GDP growth to top four percent in 2017, forecasts say

According to the ministry for National Economy, the latest estimates predict GDP growth of 4.1 percent in 2017 and 4.3 percent for 2018

Hungary’s economic outlook is promising and GDP growth is expected to exceed 2 percent this year despite the lower volume of EU funding absorbed by the economy, according to Ágnes Hornung, Minister of State for Financial Affiars.

The minister emphasized that economic growth was seen to be driven in the coming years by consumption, market services and agricultural sector output. The industrial sector may be boosted by the use of higher capacity at car manufacturers following model changes, and the construction sector may see an upturn due to measures with a positive effect on the residential property market.

The faster absorption of EU funds is also expected to add momentum to economic development projects, which is to bolster SMEs.

According to the Ministry for National Economy, the latest estimates predict GDP growth of 4.1 percent for next year and 4.3 percent for 2018.

This year’s experiences show that the largest obstacle to economic expansion in coming years may be the shortage of skilled labor, therefore efforts must be made to have properly paid people with adequate skills in highly productive jobs.

To this end, a six-year wage deal was concluded in November, which may bring European wages to Hungary and increase competitiveness, the minister noted.