In the latest World Economic Outlook, the International Monetary Fund expects faster economic growth in Hungary than they did in the prior study, published in spring 2017.

The institution prognosticates economic growth of 3.2 percent and 3.4 percent this year and next, respectively. Although the Government’s estimates are more optimistic than that, the IMF still revised the former forecast by 0.3 percentage points and 0.4 percentage points, respectively.

The IMF has left the unemployment rate prognosis unchanged, with 4.4 percent predicted for 2017 and 4.3 percent for 2018. The rate of inflation is expected to be 2.5 percent this year (unchanged since April) and 3.2 percent next year.

IMF experts also predict a global economic upturn, and they have accordingly upwardly revised some indicators of emerging European countries (among them those of Hungary, Turkey and Russia). The study noted that – contrary to predictions in the spring -- raw material prices have not picked up and thus low inflation still persisted.

International organizations, investors and credit rating agencies have come to acknowledge the performance of the Hungarian economy. The Hungarian Government believes that the new economic growth model, based on the improving of competitiveness, the raising of wages and the reduction of taxes, is leading to lasting economic convergence.  Consequently, the Government is expecting further credit rating upgrades, improving analyst forecasts, falling bond yields and country risk indicators.

The IMF is scheduled to hold its annual meeting on 13-15 October in Washington DC, where the Hungarian delegation will be headed by Economy Minister Mihály Varga.

(Ministry for National Economy)