• What awaits Hungary in 2023?


    What awaits Hungary in 2023?

    The IMF adjusted its April growth forecast for Hungarian GDP in the recently published World Economic Outlook (WEO). Also published long-term forecasts for 2023.

    The Hungarian economy this year could grow by 4%, and GDP growth in 2019, according to IMF economists, could reach 3.3%. Thus, the Monetary Fund believes that the current dynamic growth of the Hungarian economy will slow down a bit.

    Most of the Hungarian bankers and economists are not as pessimistic as the IMF, since they believe that GDP growth this year will exceed 4%, but agree that growth will slow in 2019.

    According to the IMF, a significant slowdown in GDP growth is expected in the long term, and the Hungarian GDP will grow by 2.2% in 2023. This means that the Monetary Fund continues to count with low potential growth of Hungarian GDP.

    In comparison: GDP will grow in Croatia by 2.1%, Poland by 2.8%, Romania by 3.1% in 2023. The IMF expects that in the European region, which develops, GDP will grow by 2.7%, which is 0 , 5% higher than in Hungary.

    Inflation this year could reach 2.8% and in the next year grow to 3.3%. The long-term inflation rate is in line with the forecasts of the National Bank of Hungary (MNB) and amounts to the same 3%.

    The balance of payments, according to the IMF, in 2019 will be in excess, and even in 2023, the surplus will be expected to be 1% of GDP, that is, the balance sheet indicators of the country will be favorable.

    As a result, Hungary’s long-term GDP growth will be more moderate from the current (4%), but the surplus of payments will also become more acceptable.

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