In comparison to the prognosis published at the beginning of the year, the European Bank for Reconstruction and Development upgraded Hungary’s growth forecast for 2015 by 0.2 percentage points to 2.6 percent of GDP, while the institution predicts 2.3 percent expansion for 2016.
The EBRD published its latest report on the „Regional Economic Prospects in EBRD Countries of Operations: May 2015” during a general meeting held in Tbilisi.
As a whole, the report – which covers the countries that receive EBRD financing – is more optimistic compared to the bank’s estimates in January 2015: although for 2015 the EBRD expects flat growth for the entire group of observed countries, it predicts 1.4 percent GDP expansion for 2016.
The 2015 GDP growth estimate in case of Hungary was revised upward by 0.2 percentage points, to 2.6 percent, compared to the prognosis at the beginning of the year, while for 2016, 2.3 percent expansion is expected. The EBRD points out that favourable labour market processes and higher wages in real terms have been fuelling domestic consumption growth. Economic data and prognoses show that Hungary has been performing well in terms of economic growth and various other indicators.
However, in the opinion of the Ministry for National Economy the outlook of Hungary’s economic growth will even be better than predicted by the EBRD, as GDP growth will reach 3.1 percent in 2015. SME credit schemes and the low interest rate environment will also add to investment growth. The massive scaling back of funding in the EU will remain, but consumption will contribute to economic expansion, thanks to household disposable income growth, falling oil process and the refund of some HUF 1000bn for former forex borrowers.
In spring this year, the International Monetary Fund and the European Commission also upgraded Hungary’s economic outlook.
For the full report please visit:
(Ministry for National Economy)
