The economy is slowing down

teknősGrowth data at the beginning of the year indicate a slowdown in the Hungarian economy. In recent months, international forecasting institutions have reduced their GDP forecasts for Hungary and economic expectations have also deteriorated slightly. The GDP forecast of GKI is unchanged: the annual average growth rate will only be around 2.3 per cent in 2016, after 2.9 per cent in 2015 and 3.7 per cent in 2014, especially due to the decrease in investments. Read More …

Deteriorating growth prospects worldwide

csigafutamThe growth rate of the Hungarian economy temporarily picked up again in the fourth quarter of 2015, and it exceeded the EU average by more than one percentage point. However, in the CEE region the Slovak, Romanian, Polish, Czech and Bulgarian growth rates were all higher. The slowdown is expected to continue in Hungary: the annual average growth rate will be around 2.3 per cent in 2016, after 2.9 per cent in 2015 and 3.7 per cent in 2014. The EU forecasts that out of the 11 countries in the CEE region only the Croatian, Bulgarian and Slovenian growth rates will be lower than the Hungarian one. Read More …

Deceleration continues in 2016

After a numfekber of weak years, the development of the Hungarian economy in 2014 was the
second fastest in the EU. GDP growth was above-average in 2015 as well; however, it lagged
behind the results of the majority of Hungary’s competitors in the CEE region due to the
slowdown in the economy. In 2016 the gap will open further: in the 11 countries of the region
only the Croatian, Bulgarian and Slovenian GDP growth rates will be lower than the Hungarian
one.  Read More …

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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