The International Monetary Fund (IMF) has revised its forecast of Hungary’s economic growth to 6.2 percent in 2021, from a projected 4.3 percent in May.
In an assessment following a regular consultation, the IMF called Hungary’s fiscal policy response to the economic fallout of the coronavirus pandemic “large and timely.” It noted that the deficit increased to 8.1 percent of GDP and public debt rose above 80 percent of GDP. The IMF said inflation was expected around 4.1 percent in 2021.
Meanwhile, the European Bank for Reconstruction and Development (EBRD) also raised its forecast for Hungary’s GDP growth this year to 5.5 percent in a biannual report published on Tuesday. The forecast was raised from 4 percent in a release issued in September 2020. The government’s official projection for GDP growth this year is 4.3 percent. The EBRD sees Hungary’s economic growth slowing to 4.8 percent in 2022.