IMF raises GDP growth forecast for Hungary

The International Monetary Fund (IMF) raised its projection for Hungary’s GDP growth this year to 4.0 percent in its fresh World Economic Outlook published on Tuesday.

The projection was raised from 3.8 percent in a forecast released in April, but is still under the government’s official target for 4.3 percent growth.

The IMF noted that estimates and projections in the latest World Economic Outlook were based on statistical information available until September 18. Two weeks after that date, Hungary’s Central Statistical Office (KSH) revised first-half GDP growth up 0.1 percentage point to 4.7 percent.

The IMF sees Hungary’s GDP growth slowing to 3.3 percent in 2019.

The IMF projects average annual inflation will pick up to 2.8 percent in 2018 and to 3.3 percent in 2019, climbing over the National Bank of Hungary’s 3.0 percent mid-term target.

It sees the unemployment rate dropping to 3.9 percent in 2018 and to 3.5 percent in 2019.

The current account surplus is set to narrow to 2.3pc of GDP in 2018 and to 2.1pc in 2019.

In a statement issued after the forecast was released, the finance ministry said the improved outlook was an “acknowledgement of the results of Hungary’s economic policy and the country’s growth potential”.

The ministry noted that the IMF had revised upwards the growth forecast for Hungary six times in the past four years in its biannual World Economic Outlook.

Source: MTI