Hungary’s economy is set to enjoy a robust growth in the upcoming 2015 year and for the rest of 2014, predicts London-based economist. The report states that given the country’s strong first half of this year, a growth of 3.5% is “easy to see”, significantly surpassing Morgan Stanley’s initial prediction of 2.9%.
The autumn report, titled “CEEMEA 2014 Back-to-School Outlook”, compiled on emerging markets, released to London investors by Morgan Stanley clearly signs that the domestic demand in Hungary is once again “alive and well”, surviving years of depression. The next few quarters could have a huge effect on the economy, and consumption could receive an additional extra jolt if household receive a 2% principal reduction on their forex loans.
“Our 3% growth forecast is again higher than our previous call (of 2.4%), but we think that this pace will be difficult to sustain into 2016″, said an analyst at Morgan Stanley. The outlook may be optimist for now, however, expectations are that Hungary’s GDP growth will slow down to 2.3% by 2016, since the country’s economy still faces several major issues, such as bank my still faces major structural issues, such as bank deleveraging and policy uncertainty.
via HungaryMatters, photo public domain