While most forecasters project a GDP growth rate of 4-4.5 per cent for 2018, they—with the exception of the government—expect only 3-3.5 per cent for next year. (GKI projects at least 4.2 per cent this year, and only about 3.2 per cent next year.) The rate of increase in investments financed by EU transfers and in household consumption, boosted by the elections as well, is expected to slow down. In addition, the trends in European business activity are also uncertain. For the time being, fiscal and monetary policy is loose. Relations between Hungary and the EU are tense.
According to the forecast of GKI Economic Research Co., the slowdown of the Hungarian economy that started in the second quarter of 2015 will continue. The 3.6 per cent growth rate in first-quarter was followed by only 2.7 per cent in the second quarter and summer data suggest a further deceleration. After 3.6 per cent in 2014, the GDP growth rate will be 2.7 per cent in 2015 and around 2 per cent next year, mainly due to the stagnation of investments in 2015 and their decline in 2016. However, internal and external equilibria will be favourable. Read More …
In August 2013 GKI conducted a representative survey among Hungarian companies. 978 CEOs have responded. They were asked, among other things, how their administrative burdens had changed compared to 2010.
It seems that following the restructuring of the legal and institutional framework of the state, the Hungarian government considered that the time has also come for the “non-traditional” transformation of its EU-conform market economy.