IMF Slightly More Pessimistic about Economic Growth than the Government

The International Monetary Fund (IMF) forecasts economic growth in Hungary of 2.2 percent, slightly lower than the Hungarian government’s forecast of 0.3 percentage points, Világgazdaság reports.

Although the country was not yet included in its January forecast, the IMF published its most recent estimate on Tuesday, predicting that Hungary’s GDP will grow by 2.2 percent this year and 3.3 percent next year, following a 0.9 percent decline last year. As for inflation, the report forecast the following for Hungary:

after 17.1 percent in 2023, inflation will be 3.7 percent in 2024, and 3.5 percent in 2025,

while the unemployment rate will be 4.4 percent this year and 4.2 percent next year, up from 4.1 percent last year.

The IMF’s overall outlook for the global economy this year has improved only marginally since its previous forecast in January.

Last year, the Hungarian economy’s performance declined by 0.9 percent, compared with the 4.1 percent growth forecast in the original budget, which was later reduced to 1.5 percent with an amendment.

The government expects growth to be around 2.5 percent in 2024, putting Hungary in the forefront of the European Union. At last week’s cabinet briefing, Finance Minister Varga Mihály said that growth is expected to accelerate in the second half of the year, and that GDP could be 4.1 percent higher next year. On the Hungarian budget, it is also worth noting that, unlike usual, next year’s budget will be presented to parliament in autumn rather than spring.

Via Világgazdaság, Featured image: Pixabay