Hungary’s think-tank GKI keeps 2013 economic growth forecast at 0.3%.

By bne IntelliNews September 23, 2013

Economic think-tank GKI expects Hungary’s economy to grow by a real 0.3% y/y in 2013 after contracting by 1.7% in 2012, GKI said in a fresh forecast confirming its previous projection.

Private consumption is projected to pick up 0.5% y/y in 2013 helped by an expected real hike of 2% y/y in the average gross wage. Investments will largely stagnate in 2013, GKI said.

Foreign demand will again be the key growth driver, while domestic demand is also expected to recover.

On the production side, the agriculture is projected to increase by 18% y/y and will be the main growth driver in 2013. The output in construction and information and communication sectors will grow by 4% and 1% y/y, respectively. The transport sector will expand by 2% y/y. GKI still expects a moderate performance of the industry, which is forecasted to increase by only 0.5% y/y. Meanwhile, trade and real estate sectors will stagnate this year.

The consumer price growth is seen easing to 1.9% y/y in 2013, GKI said lowering its previous projection for a 2.2% y/y price growth.

The average annual unemployment rate in the country will stand at 10.8% in 2013, GKI said.

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