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Financial analysts: Elections results ensure economic policy continuity
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The ruling alliance’s sweeping win in Sunday’s election will ensure economic policy continuity, Fitch Ratings said on Monday.
In a note released in London, Fitch said this would support strong growth this year, though risks of macroeconomic imbalances emerging had increased.
Fidesz did not publish a manifesto, instead highlighting its record in government since 2010, Fitch noted, adding this pointed to economic policy continuity.
“We forecast growth to remain around 4 percent this year, partly due to another minimum wage increase.”
The budget deficit is likely to be kept below 3 percent of GDP, Fitch said, adding this was “an important policy anchor” keeping the public debt on its downward trajectory.
“We believe the central bank will only raise interest rates once inflation is firmly in the upper end of its target of 3 percent +/-1pp, which is not yet the case.”