Miklós Losoncz wins accuracy award

Senior researcher of GKI Miklós Losoncz won a Forecast Accuracy Award of London based institute Consensus Economics with his forecasts made on the Slovak economy for the year 2017.
The Forecast Accuracy Award program recognises the achievements of a select group of expert country economic forecasters who have most accurately predicted the final outturns of GDP growth and consumer price inflation in their targeted economies.

The results can be accessed using this link.

Consumption of households grows rapidly this year as well

As GDP, earnings and consumption grew faster than previously thought, GKI raised its 2018 GDP growth forecast from 3.8 per cent to 4 per cent. Although the foreign trade surplus is decreasing due to the rapid rise in domestic consumption, the external balance will continue to improve as a result of mounting EU transfers. Owing to the substantial advance payments from the general government necessary for accelerating EU transfers, the general government deficit in cash flow terms will be high and the decline in government debt will be modest. The EU is expecting an adjustment from the Hungarian government due to a high deficit compared to the favourable economic situation. Although the risk of escalating global trade war has declined, the Iranian, Turkish, and Italian situations have already had negative effects on energy prices and exchange rates.

You can download the forecast from here.

The archive of earlier forecasts is available here.

More information.

Improving industrial and construction expectations, deteriorating consumer, commercial and service expectations

The GKI economic sentiment index deteriorated marginally in May. According to the empirical survey conducted by GKI with the support of the EU, this was the result of the deterioration in consumer expectations as business expectations improved slightly. Nevertheless, the GKI economic sentiment index is only slightly below its historic peak reached in February.

You can download the report from here.

You can download the survey data in Excel 2007 format from here.

You can reach the archive of survey summaries here.


The capital’s optimism strengthened, non-Budapest market has not changed

Outlooks on the residential and construction site markets became more favourable compared to the previous survey a quarter ago. The improvement was particularly significant in Budapest agglomeration. There was no meaningful change in non-Budapest market, these expectations still reflects some kind of optimism.

You can download the report from here.

You can download the index values from here.


For the time being, GDP growth is relatively fast

Being at the helm for eight years, Fidesz-KDNP won a two-thirds majority in the parliamentary elections again on April 8th. This is expected to entail a stronger establishment of the one-centred Hungarian political model than before. The continued deterioration of competitiveness, the deepening conflicts with the EU and the uncertain decline in EU transfers after 2020 pose great challenges to the sustainability of this policy. The idea of drastically stimulating corporate and retail borrowing instead of strengthening competitive market conditions seems to be a new problem rather than a solution. However, the GDP growth rate may be close to 4 per cent in 2018.

You can download the forecast from here.

More information.