IMF Raises GDP Growth Forecast For Hungary

  • 10 Oct 2018 5:59 AM
  • Hungary Matters
IMF Raises GDP Growth Forecast For Hungary
The International Monetary Fund (IMF) raised its projection for Hungary’s GDP growth this year to 4% in its fresh World Economic Outlook. The projection was raised from 3.8% in a forecast released in April, but is still under the government’s official target for 4.3% growth.

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

The IMF sees Hungary’s GDP growth slowing to 3.3% in 2019. The IMF projects average annual inflation will pick up to 2.8% in 2018 and to 3.3% in 2019, climbing over the National Bank of Hungary’s 3% mid-term target. It sees the unemployment rate dropping to 3.9% in 2018 and to 3.5% in 2019.

The current account surplus is set to narrow to 2.3% of GDP in 2018 and to 2.1% in 2019.

In a statement issued after the forecast was released, the finance ministry said the improved outlook was an “acknowledgement of the results of Hungary’s economic policy and the country’s growth potential”.

The ministry noted that the IMF had revised upwards the growth forecast for Hungary six times in the past four years in its biannual World Economic Outlook.

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