Economic growth slowing down – household consumption accelerating

zacsikIn the first quarter of 2016 only the GDP growth rate of Greece was slower than that of Hungary. Because of this data, which was worse than expected, GKI lowered its growth forecast for 2016 from 2.3 per cent to 2 per cent; however, the actual growth rate can be even lower than this. Owing to the fall in construction, the decline in investments will be more significant, around 8 per cent. However, due to the rapid increase in earnings, the expansion of consumption may be 3.5 per cent.

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GKI economic sentiment index stopped to decrease further in May

kosar

The decline of the GKI economic sentiment index, which started in January 2016, stopped in May, and it even slightly increased. According to the empirical survey conducted by GKI (www.gki.hu) with the support of the EU, the business confidence index remained unchanged compared to April. However, consumer expectations almost reached their peak value this year.

 

You can download the report from here.

The Budapest housing market continues to accelerate, the rural one slows down

1014151_1416325523_1002619-1412067653-1002624-1412067558-immobilier-construction-real-estate-immeuble-batiment-2In April 2016, the Budapest and the Hungarian real estate market indices of GKI-MGYOSZ were higher than in the previous quarter, in both cases by almost 2 points. The former index was 5 points higher than a year ago, the latter one by 3 points. The index figures represent a 41-quarter peak for Budapest, and a 37-quarter peak for Hungary.

 

You can download the report from here.

You can download the index values from here.

The economy is slowing down

teknősGrowth data at the beginning of the year indicate a slowdown in the Hungarian economy. In recent months, international forecasting institutions have reduced their GDP forecasts for Hungary and economic expectations have also deteriorated slightly. The GDP forecast of GKI is unchanged: the annual average growth rate will only be around 2.3 per cent in 2016, after 2.9 per cent in 2015 and 3.7 per cent in 2014, especially due to the decrease in investments. Read More …

The GKI Economic Sentiment Index has declined for the third consecutive month

Composite image of serious businessman standing with hands in pockets

In April, business expectations deteriorated. Although consumer ones improved slightly, they still remained below their February level. According to the empirical survey conducted by GKI (www.gki.hu) with the support of the EU, confidence in the economy decreased slightly in all sectors and also among consumers in April, compared to its high level in January.  Read More …