EBRD slightly cuts Hungary’s 2014 GDP growth forecast to 1.6%

By bne IntelliNews May 15, 2014

Hungary's economy is projected to grow by 1.6% in 2014, speeding up from 1.1% estimated for 2013, the European Bank for Reconstruction and Development (EBRD) said in the latest edition of its Regional Economic Prospects report published on May 14. The bank slightly revised down the estimate from a 1.7% y/y GDP growth expected in January. The annual growth rate is projected to slow down to 1.2% y/y in 2015.

The EBRD noted that even though medium-term growth potential remains much diminished, recovery in domestic demand can give some impetus in the short term. The bank also highlighted that the 2.7% y/y GDP expansion in Q4 2013 was mainly driven by domestic demand which was supported by one-off factors, such as government-mandated utilities price cuts and the disbursement of EU funding at the end of the 2007-2013 budget period. It said that the second phase of the central bank’s Funding for Growth Scheme has begun only slowly and was unlikely to overcome the underlying lack of investment demand.

Hungary’s government sees this year's GDP growth at 2%. This projection is in line with the expectations of the OECD and the IMF. Earlier in May the European Commission forecast a 2.3% economic growth for Hungary, while the World Bank sees it at 1.7%.

 

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Hungary's electric sports aircraft maker expands production

Hungary's Magnus Aircraft is constructing a new manufacturing plant in southern Hungary near the regional Pecs-Pogany airport to meet rising demand for its unique aircraft and plans to finish ... more

Gyorgy Waberer to list logistics company BILK on Budapest bourse

Gyorgy Waberer, the former owner of haulage company Waberer, plans to list shares of Budapest logistics terminal BILK on the Budapest Stock Exchange in June, local media reported on May 28. “I ... more

Hungary reaches deal with Gazprom on 2019 gas deliveries

Hungary has reached an agreement with Russian gas giant Gazprom on the volume and price of next year's gas deliveries and negotiations have begun on gas deliveries for 2020, Foreign Minister Peter ... more

Most Read

  1. STOLYPIN: Putin builds a Presidential Administration fit for stagnation
    7 days ago
  2. Azerbaijan makes territorial gains in Nakhchivan as fighting with Armenia flares
    1 day ago
  3. Irish tech titan lines up stake in Slovak AI firm
    3 days ago
  4. Turkish Elections: Expect the unexpected
    18 hours ago
  5. Ukraine's German factories left ticking over on the EU border
    6 days ago
  1. KRUK REPORT: The unbearable lightness of being alive
    21 days ago
  2. Sberbank oil analyst Alex Fak fired for being openly critical of state-owned gas giant Gazprom
    30 days ago
  3. COMMENT: Russia’s oil giant Rosneft just crossed one of China’s red lines in Vietnam
    16 days ago
  4. STOLYPIN: Putin builds a Presidential Administration fit for stagnation
    7 days ago
  5. Gazprom insider pipeline deals for Putin cronies worth $93bn, analysts claim
    1 month ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss