EC projects 4.0 pc GDP growth in Hungary in 2021

The European Commission projects Hungary’s GDP will grow b 4.0 percent this year in a winter economic forecast published on Thursday.

The projection is level with the one in the EC’s forecast released in November.

The EC modified its estimate for last year’s decline in Hungary’s GDP to 5.3 percent from 6.3 percent.

It said industry, construction and retail sales remained strong in October and November but the rebound was interrupted by the second wave of the coronavirus pandemic which led to more restrictions.

The EC said the economic contraction was driven by plummeting investment and service exports. However, the assumed easing of restrictions could lead to a quick recovery from mid-2021, it added.

The commission projects a 5 percent growth rate for 2022, up by 0.5 percentage points from its autumn forecast.

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Source: MTI