BUDAPEST: IMF expects growth in Hungary to decelerate to 2.75% this year from 3.6% last year, to 2.3% next year, and to 2.2% in 2017 on account of a smaller domestic demand impetus due to less supportive fiscal stance and lower investment growth, given the projected decline in EU funds.
Private consumption is expected to continue to grow, reflecting lower household indebtedness, accommodative monetary conditions, and higher employment. Over the medium term, output growth is set to stabilize at around 2%, IMF staff said, noting that he Hungarian authorities “were more optimistic about Hungary’s medium-term growth prospects.”
The Hungarian economy is recovering steadily helped by supportive macroeconomic policies and improved market sentiment, the International Monetary Fund (IMF) said yesterday in its 2015 Article IV Consultation-Staff Report on Hungary.