articleimg-1
Oct 10, 2018

IMF raises its projection for Hungary’s GDP growth

In its World Economic Outlook published on Tuesday, the projection was raised from 3.8 to 4 percent, but is still under the government’s official target for 4.3 percent growth

The International Monetary Fund (IMF) has raised its projection for Hungary’s GDP growth to 4.0 percent in 2018.

In its World Economic Outlook published on Tuesday, the projection was raised from 3.8 percent in a forecast released in April but is still under the government’s official target for 4.3 percent growth.

According to MTI, the IMF noted that estimates and projections in the latest World Economic Outlook were based on statistical information available until September 18th. Two weeks after that date, Hungary’s Central Statistical Office (KSH) revised the first-half GDP growth up 0.1 percentage point to 4.7 percent.

The figures see Hungary’s GDP growth slowing to 3.3 percent in 2019. The IMF projects average annual inflation will pick up to 2.8 percent in 2018 and to 3.3 percent in 2019, climbing over the National Bank of Hungary’s 3.0 percent mid-term target.

The report sees the unemployment rate dropping to 3.9 percent in 2018 and predicts a drop to 3.5 percent in 2019.

The finance ministry said the improved outlook was an “acknowledgement of the results of Hungary’s economic policy and the country’s growth potential”.