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IMF Expects Hungarian Economy to Grow at Third Fastest Rate in the EU This Year

MTI-Hungary Today 2021.10.21.

The Hungarian economy is expected to grow at the third fastest rate in the European Union this year, the International Monetary Fund (IMF) confirmed in its revised regional growth forecast.

Accordingly, Hungary’s gross domestic product will increase by 7.6 percent this year, after a 5 percent decline in 2020.

The figure is in line with the IMF’s latest World Economic Outlook released on October 12, and exceeds the forecast published in the April WEO by 3.3 percentage points.

With this rate, Hungary will only trail Ireland (13 percent) and Estonia (8.5 percent) within the European Union.

According to the forecast, Hungary’s economy will grow by 5.1 percent in 2022 and by 3.8 percent in 2023.

Finance Minister Projects 7% GDP Growth for 2021
Finance Minister Projects 7% GDP Growth for 2021

The deficit is expected to come to 7.5 percent of GDP, Mihály Varga said. The government expects inflation to start falling from the beginning of 2022 and sees the situation "normalizing" by the summer of 2022.Continue reading

The IMF has also confirmed its inflation forecast of 4.5 percent for this year, which would exceed last year’s rate by 1.2 percentage points. It put average the annual inflation for 2022 at 3.6 percent and for 2023 at 3.3 percent.

In the featured photo illustration: IMF managing director Kristalina Georgieva. Photo by MTI/EPA-KEYSTONE/Alessandro Della Valle