Financial Research Plc. forecasts 3.8 pc GDP growth for 2017, 2018

Financial Research Plc.(Pénzügykutató Zrt.) expects GDP growth in Hungary to be around 3.8 percent both this year and next, the economic research company said in a forecast released on Wednesday.

The forecasts are under the government’s official projections for GDP growth of 4.1 percent this year and 4.3 percent next year.

Economic growth is supported by a global pickup, faster utilisation of EU funding, looser fiscal policy, wage policy and a stimulus providing monetary policy, said Financial Research Plc. researcher Éva Várhegyi.

Investments should jump 26 percent this year, albeit from a low base. Real wages could grow by 10 percent this year and 6 percent next year.

Financial Research Plc. sees the unemployment rate falling to 4 percent in 2018.

Average annual inflation is expected to reach 2.4 percent in 2017 and 2.5 percent in 2018, still below the 3 percent medium-term target set by the National Bank of Hungary.

Exports are set to rise by 9.5 percent and 6 percent this year and next, respectively.

Financial Research Plc. puts import growth at 12 percent and 8 percent for the two years.

As we wrote today, retail sales in Hungary increased by an annual 4.6 percent in August, up from 4.2 percent in July, preliminary data released by the Central Statistical Office (KSH) on Wednesday show.

Source: MTI