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%.
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, 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 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