Economic growth is supported by a global pickup, faster utilisation of EU funding, looser fiscal policy, wage policy and a stimulus providing monetary policy, said Financial Research Plc. researcher Éva Várhegyi. Investments should jump 26 percent this year, albeit from a low base. Real wages could grow by 10 percent this year and 6 percent next year.

Financial Research Plc. sees the unemployment rate falling to 4 percent in 2018. Average annual inflation is expected to reach 2.4 percent in 2017 and 2.5 percent in 2018, still below the 3 percent medium-term target set by the National Bank of Hungary.

Exports are set to rise by 9.5 percent and 6 percent this year and next, respectively. Financial Research Plc. puts import growth at 12 percent and 8 percent for the two years.

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