IMF projects faster economic growth in Hungary

Budapest, May 11 (MTI) – The International Monetary Fund raised its forecast for Hungary’s economic growth in its Regional Economic Issues report released on Monday.

Growth could reach 2.7 percent this year according to the new report. The forecast was raised from 2.3 percent in the previous report published in October 2014.

For 2016, the IMF expects growth of 2.3 percent.

Real domestic demand could grow at a slower pace, with 1.1 percent growth expected in 2015, down from a 2.5 percent growth forecast in October.

Export growth is projected at 6.2 percent compared with 5.3 percent. Real private consumption could grow 2.6 percent, faster than the previous forecast of 1.5 percent, the report said.

Average inflation in 2015 is now seen at zero, compared with 2.3 percent predicted earlier. The current account balance to GDP is reckoned at 4.8 percent, higher than the 2 percent in the October report.

Total external debt to GDP will only reach 106.7 percent this year compared with 108.4 percent.

The budget deficit is projected at 2.7 percent in 2015, somewhat lower than the 2.8 percent forecast earlier, while public debt will be 75.5 percent of GDP, down from 79.2 percent forecast in the previous report.

In 2016, the IMF expects 2.3 percent average inflation, a current account balance at 4.1 percent, total external debt to GDP reaching 90.2 percent, a deficit of 2.5 percent and public debt at 74.7 percent.

Source: http://mtva.hu/hu/hungary-matters