In July, the GKI real estate indices for Budapest and Hungary stood at 1 and 0 points respectively. Both figures dropped slightly by 1 point, compared to the previous survey. Both indices went up 2 points, compared to the survey made one year earlier. The property market outlook improved only in the office space market, from the previous quarter. On the other hand, no significant change occurred in the other three segments. Generally, the property market outlook is slightly over its peak but it is still on the sunny side.
In April, the Budapest and the national real estate indices of GKI stood at 2 and 1 points, respectively. The index figure in the capital city has fallen modestly by 1 point. The national index has dropped slightly from January (within the error margin). Both indices went up 3 points compared to one year earlier.
Hungary’s GDP growth has been low in 2016 compared to other countries in the CEE region or to its growth rate in the previous year. However, some acceleration of the growth rate can be expected in the second half of the year. GKI maintains its GDP growth forecast of 2 per cent for 2016. Internal and external equilibria are very favourable, and inflation almost ceased.
By the end of summer 2015 statistical data also revealed that the Hungarian economy has been on a slowing trajectory. It is no surprise as the rapid growth in 2014 (that also continued in the first quarter of 2015) was basically due to temporary factors, such as the peak of the inflow of EU transfers, the revitalization of consumption in connection with the election year, the excellent harvest and former automotive investments. Economic prospects are further dimmed by a slowdown in the Chinese economy and the expected deterioration in European business activity, due to rising political risks (e.g., migration crisis). Read More …
In 2014, the performance of the Hungarian economy was much better than anticipated by anyone. Nevertheless, in a forward looking perspective, it did not reach a trajectory that ensures sound caching-up by Central and Eastern European standards. The spectacularly favourable statistical figures of 2014 are attributed to temporary factors and/or unduly heavy sacrifices made in other fields.