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Fiscal Council Projects Higher-than-Assumed GDP Growth in 2019

MTI-Hungary Today 2019.09.11.

Hungary’s Fiscal Council, which gives opinions on budget matters, has said economic growth may exceed 4.1 percent assumed in the 2019 budget, supporting the fulfilment of budget targets.

Hungary’s economy grew by an annual 5.1 percent in the first half of the year.

Hungary’s GDP Growth Tops Europe: The Keys to Its Success

The budget ran a 10 billion forint surplus in the first quarter and a 120 billion surplus in the second quarter, according to accrual-based accounting, the council noted, citing Central Statistical Office (KSH) and National Bank of Hungary (NBH) data.

According to cash flow-based accounting, the budget ran a 390 billion forint deficit at the end of the first half, hitting 39.1 percent of the full-year target, the council said. Pre-financing for European Union funded projects produced a 364 billion forint gap between payouts and transfers from Brussels, it added.

2018 GDP Growth Underestimated by All

The council said the accrual-based deficit is likely to be back-loaded, as in the previous three years, with most of the difference accumulating in the last quarter of the year, adding that the 1.8 percent deficit target, relative to GDP, is achievable nevertheless.

In the featured photo: Árpád Kovács, the head of the Fiscal Council