IMF Projects Faster Economic Growth In Hungary

  • 12 May 2015 9:00 AM
IMF Projects Faster Economic Growth In Hungary
The International Monetary Fund raised its forecast for Hungary’s economic growth in its Regional Economic Issues report. Growth could reach 2.7% this year according to the new report. The forecast was raised from 2.3% in the previous report published in October 2014. For 2016, the IMF expects growth of 2.3%.

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

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

Average inflation in 2015 is now seen flat-lining, compared with 2.3% predicted earlier.

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

The Hungarian central bank should continue its monetary easing in light of the economy’s low inflationary pressure, Jörg Decressin, Deputy Director of IMF’s European Department, told a press conference at the National Bank of Hungary.

Decreasing welcomed the NBH’s efforts against a decline in consumer prices, adding that once a deflationary period has started, it was very difficult put an end to it.

Source www.hungarymatters.hu - Visit Hungary Matters to sign-up for MTI’s twice-daily newsletter.

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