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Jun 20, 2018

Századvég raises its GDP growth projection for Hungary to 4.2 percent for 2018

In a revised forecast released on Tuesday, the economic research institute improved projections from 4.1 percent this year and 3.2 percent in 2019

Economic research institute Századvég has raised its GDP growth projection for Hungary to 4.2 percent for 2018 and 3.4 percent for 2019.

In a revised forecast released on Tuesday, the institute improved projections from 4.1 percent this year and 3.2 percent in 2019.

Századvég said the growth rate for this year would be lifted by consumption and investments. Consumption is predicted to rise by 5.1 percent in 2018 and by 4 percent in 2019 on the back of rising real wages.

The institute also said that Hungary’s employment rate has caught up with the European Union average, but could be further lifted by rising consumption.

Investments are also projected to rise by 12 percent this year and by 3.4 percent in 2019 thanks to both private and government investments, with the latter being financed in part by EU funds.