City Predicts Robust Growth This Year And Next In Hungary
- 9 Sep 2014 9:00 AM
Hungary’s economy is set to enjoy robust growth rates this year and in 2015 before a marked slowdown is likely to set in, London-based emerging markets economists said. Given a much stronger first half than anticipated, “it is easy to see” Hungary growing by 3.5% this year against Morgan Stanley’s previous forecast of 2.9%, the report says.
In its autumn report on emerging markets titled “CEEMEA 2014 Back-to-School Outlook”, released to investors in London, Morgan Stanley said there are now clear signs that domestic demand components are “alive and well” in Hungary after years of depression.
The next few quarters’ consumption could receive a further boost if households receive a 2% principal reduction on their forex mortgages in the coming months, which seems likely. Next year, “our 3% growth forecast is again higher than our previous call (of 2.4%), but we think that this pace will be difficult to sustain into 2016”.
Morgan Stanley said it expects Hungary’s GDP growth to slow to 2.3% in 2016, given that the economy still faces significant structural issues, such as bank deleveraging and policy uncertainty.
Source www.hungarymatters.hu
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