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IMF Forecasts Hungary Economy Contracting 3.1% in 2020

MTI-Hungary Today 2020.04.14.

The International Monetary Fund (IMF) projects Hungary’s economy will contract by 3.1 percent this year in its latest World Economic Outlook released on Tuesday.

The IMF sees Hungary’s economy rebounding and expanding by 4.2 percent in 2021.

In its forecast released last autumn, the IMF had put GDP growth at 3.3 percent for 2020 and at 2.9 percent for 2021.

Inflation is seen declining to 3.3 percent from last year’s 3.4 percent and to 3.2 percent next year.

The unemployment rate is set to rise to 5.4 percent from last year’s rate of 3.4 percent. It is projected to fall to 4.0 percent in 2021.

The IMF’s latest forecast sees Hungary registering the second smallest economic drop in the European Union this year after Malta, whose economy is seen contracting by 2.8 percent. Outside the bloc, only Serbia is seen doing better with a contraction of 3.0 percent.