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The National Bank of Hungary (MNB) expects Hungary’s GDP to grow by 4-6 percent this year, forecasts from its latest quarterly Inflation Report released on Tuesday show.

The central bank had forecast a growth rate of between 3.5 and 6.0 percent in its previous report released in December.

The finance ministry expects GDP to to expand by 4-5 percent this year.

The NBH puts the average annual inflation rate for this year at 3.8-3.9 percent, above the 3.5-3.6 percent range forecast in December.

The central bank sees the economy expanding by 5.0-6.0 percent next year and by 3.5 percent in 2023.

The bank’s forecasts for inflation show CPI at 2.9-3.0 percent in 2022. It left the 2023 inflation forecast unchanged at 3.0 percent.

Hungary GDP Falls 3.6% in Q4, 5% in Full Year
Hungary GDP Falls 3.6% in Q4, 5% in Full Year

Hungary’s economy shrank by an annual 3.6 percent in the fourth quarter of 2020, slowing from a 4.6 percent decline in Q3, the Central Statistical Office (KSH) said in a second reading of data on Tuesday. The drop was revised up from 3.7 percent in a first reading of the data released on February 16. […]Continue reading

The NBH noted that the forecast is in a range because of the uncertain economic prospects resulting from the coronavirus pandemic.

featured image illustration via Tamás Vasvári/MTI