IMF Lowers Hungary's GDP Growth Forecast to 2.2%

  • 17 Apr 2024 5:25 AM
  • Hungary Matters
IMF Lowers Hungary's GDP Growth Forecast to 2.2%
The International Monetary Fund (IMF) projected Hungary’s GDP would grow by 2.2% this year in its latest World Economic Outlook.

The forecast was lowered from 3.1% in the previous WEO published in October.

The IMF puts average annual inflation in Hungary at 3.7%, down from 17.1% in 2023. It projects a current account deficit equivalent to 0.2% of GDP for 2024.

The unemployment rate is set to reach 4.4 %. For 2025, the IMF puts GDP growth at 3.3% and average annual inflation at 3.5%.

Hungary March Budget Deficit HUF 2,321 Billion

Hungary’s cash-flow budget deficit was 2,321.4 billion forints at the end of March, the finance ministry said on Tuesday in a first release of data.

The central budget posted a shortfall of 2,338.3 billion at the end of the month, while social security funds were 61.7 billion in the red. Separate state funds showed a 78.6 billion surplus.

The budget posted a deficit of 1,704.0 billion at the end of February. Interest spending, including large payments on retail government securities, came to 1,241.3 billion forints in January-March, up 604.0 billion from the same period a year earlier, the ministry said. Spending on maintaining the regulated utilities price system for households reached 461.3 billion, it added.

“The government’s goal is to put the economy on a path of sustainable growth, while continuing to reduce budget deficit and state debt levels,” the ministry’s statement said, adding that the government targets a budget shortfall of 4.5% of GDP in 2024, 3.7% in 2025 and a 2.9% deficit in 2026.

Meanwhile, Minister Says: State Assets Double Since 2010

Hungary has doubled the total value of its state assets from 11,600 billion forints to 21,800 billion in 2022, the national economy minister told a press conference held on the role and achievements of the National Asset Manager (MNV) on Monday.

Márton Nagy said a “significant” portion of the assets was real estate while the rest was equities and other assets. Nagy said the MNV generated revenues 31.8 billion forints as opposed to a planned 22.7 billion forints in 2023, including 18.1 billion generated through property sales.

The company expects to earn 39.2 billion forints this year, including 32.7 billion forints from the sales of state properties, the minister said.


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