Hungary c-bank slightly raises 2013 GDP growth forecast to 0.7%.

By bne IntelliNews September 27, 2013

Hungary's economy is projected to grow by 0.7% y/y in 2013, the central bank said in a new forecast slightly improving its previous estimate for a 0.6% y/y expansion expected in June. The bank also revised up its GDP growth projection for 2014 to 2.1% from 1.5%.

This year Hungary's economic growth will continue to be driven by external demand. Household consumption will also have a positive contribution as it is expected to increase by 0.4% y/y in 2013, after contracting 1.4% y/y in 2012. On the other hand, investments will further decline by 1.3% y/y in 2013, albeit at a slower pace than in 2012 whet they shrank by 3.8% y/y. Moreover, investments would reverse to a 7.8% y/y increase in 2014, which together with rising external demand will contribute for acceleration of the GDP growth next year.

The bank expects gross average earnings to increase by 3.3% y/y in 2013 and by 4.5% y/y in 2014. Employment is projected to pick up by 0.8% y/y both in 2013 and 2014.

Related Articles

Hungary to issue euro bonds after six years

Hungary’s Government Debt Management Agency AKK announced on September 26 that it plans to issue 10-year Eurobonds to refinance high-interest dollar bonds maturing soon. The agency mandated BNP ... more

South Africa’s NEPI acquires shopping malls in Hungary, Bulgaria for €528mn

South African fund NEPI Rockastle said it has acquired two new shopping centres – in Hungary and Bulgaria – for a combined €528mn. The fund, which purchased another shopping centre in ... more

Hungarian unions in full gear for first country-wide strike at Tesco stores

Union leaders are preparing for the first country-wide strike at Tesco stores in Hungary, which has unanimous support from workers, local media reported on September 4. This is just the latest in ... more