Takarekbank keeps Hungary's 2013 GDP growth projection unchanged at 0.7%.

By bne IntelliNews September 19, 2013

Hungary’s Takarekbank expects the local economy to grow by a real 0.7% y/y in 2013, keeping the estimate unchanged from its previous forecast in June 2013, MTI news agency reported. The forecast is in line with the government's expectations. The country's GDP growth is expected to accelerate to 1.7% y/y in 2014.

Takarekbank has revised its projection for the annual average inflation in 2013 to 1.9% from previously expected 2%. It also cut next year's projection to 1.7% from 2.9%. The revision reflects the cabinet’s decision to reduce household gas, electricity and district heating prices.

Referring to monetary policy, Takarekbank expressed a view that the central bank could cut the base rate to 3.50% from current 3.80% without any serious risk to the forint's exchange rate or financial stability. The ease, however, could only take place if the sentiment on the global markets continues to improve.

Related Articles

Hungary's electric sports aircraft maker expands production

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 to list logistics company BILK on Budapest bourse

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 reaches deal with Gazprom on 2019 gas deliveries

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

Dismiss