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IMF Raises GDP Growth Forecast for Hungary

MTI-Hungary Today 2021.04.06.

The International Monetary Fund (IMF) raised its projection for Hungary’s GDP growth this year to 4.3 percent in its fresh World Economic Outlook published on Tuesday.

The projection was raised from 3.9 percent in the previous forecast released last October.

Hungary’s economy contracted by 5 percent in 2020.

The IMF sees Hungary’s GDP growth rising to 5.9 percent in 2022.

The IMF projects average annual inflation will pick up to 3.6 percent this year before decelerating to 3.5 percent in 2022. The projection is up from 3.4 percent forecast in October.

It sees the unemployment rate dropping to 3.8 percent in 2021 and to 3.5 percent in 2022.

The current account deficit is set to widen from 0.2 percent to 0.4 percent of GDP this year before narrowing to 0.3 percent in 2022.

Featured photo illustration by Attila Balázs/MTI