The investment’s effect on growth was part of the reason while the NBH left its GDP projection unchanged, at 2.8% for this year and at 3% for 2017, despite projecting a far sharper drop of EUfunding- dependent state investments in 2016 and a cooler external climate, mainly due to Brexit and emerging markets, next year.

This year, the NBH also expects agriculture to give a 0.8-1 percentage-point boost to GDP.

The NBH took into account four major car industry projects worth nearly 700 billion forints creating 3,600 new jobs when calculating the effect.

Once completed, these projects would lift GDP through raising production and through second-round effects on suppliers such as rubber makers and services as well as through raising productivity, the NBH said.

Republished with permission of Hungary Matters, MTI’s daily newsletter.