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

Hungarian branch of Bucharest listed Digi to buy Invitel Tavkozlesi in €140mn deal

Bucharest listed Digi Communications announced on July 21 that its Hungarian subsidiary, Digi Tavkozlesi es Szolgaltato, has signed an agreement to acquire Hungarian broadband and telephone provider ... more

Czech judiciary denounces Poland's move to end separation of powers

Senior Czech judges on July 21 denounced Poland's judicial overhaul as an attack on the rule of law. With big street protests in the Czech Republic's neighbour seemingly gathering momentum – 120 ... more

Hungary's MOL strikes licensing deals essential to $1.9bn petrochemical expansion ambitions

Hungary's MOL announced on July 20 that it has struck licensing deals with Germany's Evonik Industries and Thyssenkrupp that will be essential in its plan to roll out a $1.9bn investment in ... more

Dismiss