Daily News | Apr 18, 2019 | 0
OECD bumps up Hungary’s economic growth prognosis
Paris, November 25 (MTI) – The OECD has improved its prognosis for Hungarian economic growth for this year to 3.3 percent in its regular biannual forecast.
The Organisation for Economic Co-operation and Development, however, said the growth rate was likely to slow down in the following two years.
Next year the OECD expects the economy to expand by 2.1 percent while in 2016 it is expected to slow to 1.7 percent.
In its previous report it had forecast growth this year of 1.3 percent and 0.5 percent for 2015.
“Growth is projected to slow down as tight credit conditions and an uncertain business environment limit investment, and fiscal stimulus is about to come to an end,” the report said. “Inflation is projected to gradually converge to the 3 percent target and unemployment to stabilise over the projection horizon,” it added.
It said the headline consumer price index would be a negative 0.1 percent this year before rising to 2 percent next year and 3 in 2016.
The OECD forecasts and unemployment rate of 7.8 this year, 7.6 in 2015 and 7.6 the following year.
It reckons the budget deficit will be 2.9 this year, 2.6 percent next year and 2.5 percent in 2016.
The public debt is reckoned to fall to 76.6 percent this year before declining to 75.7 percent in 2016.