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Economic Forecast: Growth to Slow Down

admin 2014.11.14.

The government expects economic growth to slow down from this year’s projected 3.2% in the years ahead and only return to 3% by 2018, the economic outlook for 2013-18 submitted with the 2015 budget bill shows. The budget bill submitted on Oct. 30 shows that the economy ministry expects GDP growth of 2.5% in 2015, 2.1% in 2016, 2.8% in 2017 and 3% in 2018.

Trends in the real economy in 2016 will be significantly influenced by the fluctuation of EU transfers, because in that year only the resources from the new, 2016-2020 programming period will be accessible. Annual average inflation is expected to be zero per cent this year, 1.8% next year, 2.5% in 2016 and 3% in both 2017 and 2018, the document said.

Investments will expand by a projected 10.3% this year, 4.3% next year and only 1.4 % in 2016. Resources left over from the previous EU financing period can still be used in 2014-2015. Starting from 2016, however, only the new financing period’s resources will be accessible. After that, the government projects investment to expand by 5.9% in 2017 and 4.8% in 2018.

via HungaryMatters, photo public domain


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