Facts & Statistics

IMF ups its growth forecast for Hungary

The International Monetary Fund (IMF) has revised its forecast for the Hungarian economy in its spring report.

The IMF has published its spring forecast, the World Economic Outlook, on its website. The report says Hungary’s gross domestic product (GDP) may grow by 4.3 percent this year and by 5.9 percent next year.

Last year, the performance of the Hungarian economy fell by 5 percent. In its forecast published last October, the IMF expected the Hungarian economy to grow more modestly, by 3.9 percent, this year.

According to the new IMF forecast, the annual average inflation rate may rise to 3.6 percent in Hungary in 2021 but will decline to 3.5 percent in 2022. The expected increase in consumer prices for this year was raised by 0.2 percentage points from an estimated 3.4 percent in October.

Analysts expect a smaller-than-expected deficit in the current account. According to a recent forecast, the current account deficit could be 0.4 percent of GDP this year, while the IMF estimates next year’s deficit at 0.3 percent.

As to the unemployment rate, the report states it could be 3.8 percent this year and 3.5 percent in 2022.

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