Hungary’s economy is expected to grow by 2.8% in 2014 and by 2.3% in 2015, according to a forecast in the IMF’s World Economic Outlook. The International Monetary Fund (IMF) has bumped up its forecast for Hungary’s economic output this year and next from 2% and 1.7%, respectively, taking into account “projected tightening in fiscal and monetary conditions”. Hungary’s government projects GDP growth of 3.1% this year. The IMF sees inflation stoking up from 0.3% in 2014 to 2.3% in 2015.It forecasts the current-account surplus at 2.5% of GDP for 2014 and 2% for 2015. Hungary’s jobless rate will fall from 8.2% this year to 7.8% next year, the IMF calculated.
Government spokeswoman Éva Kurucz said the IMF had been forced to admit that the “Hungarian model” is working: “Long-term economic growth is ensured without financial constraints, the unemployment rate has been on a falling trend, while financial stability is increasing. Hungary has succeeded in achieving an economic upturn while keeping the budget deficit below 3 percent for the fourth consecutive year. Furthermore, Hungary was able to pay back its IMF loan while also easing the burdens of families, workers and businesses”, told the spokeswoman to the public media.
via hungarymatters.hu and kormany.hu photo: The former IMF Office in Budapest (mon.hu)