The GKI real estate indices for Budapest and Hungary stood at -1 and 0 points in October 2017, respectively. Compared to the previous quarter, the index in the capital has dropped by 2 points but the index for the whole country has not changed. The Budapest index has decreased by 4 points over a year and the country index has increased by 2 points. The peak of the property market outlook is over for about a year but the present outlook is still positive.
Compared to its historic peak in September, GKI’s economic sentiment index fell slightly in October. According to the empirical survey conducted by GKI with the support of the EU, this was the result of some deterioration in business expectations as consumer expectations improved slightly, within the statistical margin of error.
After reaching historic peaks in July, GKI’s economic sentiment index and its business confidence index continued to rise in September. According to the empirical survey conducted by GKI with the support of the EU, almost all sectors have managed to exceed their best expectations at all times. Although consumer expectations deteriorated slightly in September, they still show strong optimism.
The growth rate of the Hungarian economy was noticeably lower in the second quarter of 2017 than in the first one, and it was one of the lowest in the CEE region. However, it still exceeded the EU average. The spectacular expansion of investments continued, and on this basis, GKI raised its GDP forecast for 2017 to 3.8 per cent. The trends are favourable in the short term; however, long-term solutions are still missing.
GKI’s economic sentiment index reached its historic peak in July. It decreased slightly in August, within the statistical margin of error. According to the empirical survey conducted by GKI with the support of the EU, the business confidence index fell slightly in August over the previous month. However, consumer expectations increased a bit.