No progress without investments

Accokeprding to the forecast of GKI, following a temporary rapid GDP growth in 2014, the dynamics of the Hungarian economy set to decelerate in 2015. GDP grew by 3.5 per cent in the first quarter of 2015, by 2.7 per cent in the second one and by 2.3 per cent in the third one. In the next quarters GDP is likely to increase by about 2 per cent. GKI forecasts Hungary’s GDP to grow by 2.7 per cent in 2015 and by about 2 per cent in 2016. External and internal equilibria are likely to develop favourably. Nevertheless, due to the deficiencies of economic policy in general and that of the government policy vis-à-vis banks in particular, Hungary’s upgrading by international credit rating agencies is still some time ahead. Read More …

Slowdown started

fekezesGKI Economic Research Co. predicts that the slowdown of the Hungarian economy started in the second quarter of 2015 will continue. After 3.6 per cent in 2014, the growth rate of the GDP will be 2.7 per cent in 2015 and around 2 per cent next year, mainly due to the stagnation or decline of investments. In addition, uncertainties are increasing in the world economy as well. In the second quarter of 2015 both the general government deficit and the government debt increased. However, the external balance was favourable, and deflation terminated.

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