WB revises forecast on Hungary’s GDP growth up to 3.5%

The WB revised upwards its forecast on Hungary’s GDP growth to 3.5% in 2019, according to the WB Europe and Central Asia economic update report. The WB had previously expected a 3.2% growth this year. We think that the positive revision was likely on account of inertia from the stronger-than-expected outcome in 2018. The WB had expected GDP growth of 4.6% while it turned out higher at 4.9%. It made no revisions to the projections for the next year though. It projected GDP growth to continue to slow down to 2.8% in 2020 and further to 2.6% in 2021. The continued slowdown was likely partly based on assumptions for lower EU funds in the new operating period as well as on lower estimates on potential long-term growth, in our view.

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