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.

Related Articles

Hungary fills labour market gap by luring workers from non-EU countries

Last year 25,000 foreigners outside of EU countries received working permits in Hungary, an increase of 10,000 from 2017, to ease the dire labour shortage, the pro-government daily Magyar Idok ... more

Hungarian owners take back ownership of leading e-retailer

The two Hungarian businessmen with minority stakes in Extreme Digital, Hungary's leading electronics retailer, have purchased back 50.4% of its shares from South African company Steinhoff ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Dismiss