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Hungary: GKI raises growth forecast to 4.3%
But slowdown expected in second half of the year
30 July, 12:33
(ANSA) - BELGRADE, JULY 30 - The economic research institute
GKI has raised its growth projection for the Hungarian economy
in 2019 from the 4.0% forecasted in June to 4.3%.
However, GKI said, after an exceptionally strong growth in the first quarter of the year, the economy in Hungary showed already some signs of cooling down "in the second quarter compared to the record high dynamism of the first quarter" and "in the second half of the year, the growth rate is expected to slow down significantly, to around 3.5 per cent," the institute added. According to GKI, "an important reason for this is that due to the high level of EU transfers last year, their investment stimulating effects are decreasing this year and the increase of the purchasing power of households is also slowing down. In addition, the EU's economic sentiment index is almost at its three-year low." (ANSA).
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However, GKI said, after an exceptionally strong growth in the first quarter of the year, the economy in Hungary showed already some signs of cooling down "in the second quarter compared to the record high dynamism of the first quarter" and "in the second half of the year, the growth rate is expected to slow down significantly, to around 3.5 per cent," the institute added. According to GKI, "an important reason for this is that due to the high level of EU transfers last year, their investment stimulating effects are decreasing this year and the increase of the purchasing power of households is also slowing down. In addition, the EU's economic sentiment index is almost at its three-year low." (ANSA).
