Kopint-Tárki stands by GDP forecasts for 2016, 2017

Budapest, October 5 (MTI) – Research institute Kopint-Tárki left its projections for Hungary’s GDP growth this year and next unchanged at 2.2 percent and 2.7 percent, respectively, in a quarterly forecast released on Wednesday.

The trend is unchanged: consumption continues to expand visibly, said Kopint-Tárki CEO Éva Palócz. Household final consumption expenditure could climb by more than 5 percent for the full year, while household actual final consumption could rise by over 4.5 percent, she added.

Hungary’s government forecasts GDP growth of 2.5 percent this year and 3.1 percent next year.

Kopint-Tárki projects industrial output growth of 3.0 percent this year and 5.0 percent next year.

Investments are set to decline by 10 percent this year as the European Union funding cycle goes into low gear.

The farm sector could expand in the double digits, but the construction industry is likely to fall around 15 percent, albeit at a slower pace than earlier.

The unemployment rate is expected to fall to 5.3 percent this year and 5.0 percent next year. Gross wages are seen climbing by 5.5 percent in 2016 and 5.2 percent in 2017.

Kopint-Tárki projects average annual inflation will rise from 0.3 percent this year to 1.7 percent in 2017.

The government’s deficit targets for this year and next — 2.0 percent and 2.4 percent of GDP, respectively — are achievable, Palócz said.

Kopint-Tárki made the forecast with support from national business association VOSZ.

Source: MTI