EBRD raises Hungary GDP growth forecast

Analysis

The European Bank for Reconstruction and Development (EBRD) raised its forecast for Hungary's GDP growth this year to 5.5% in a biannual report published on Wednesday.

The forecast was raised from 4% in a release issued in September 2020.

The government's official projection for GDP growth this year is 4.3%.

EBRD sees Hungary's economic growth slowing to 4.8% in 2022.

In the short term, the economic recovery will likely be driven by investments, propelled by higher FDI inflows and the EU recovery fund, and improving household consumption thanks to accumulated savings during the lockdown periods, the EBRD said.

The share of total population that received at least one vaccine dose reached 55% at the beginning of June 2021, the highest share in the regions and significantly above the EU average of 43%, which lowers the risk of another pandemic wave amid lifted restrictions, they added.

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