GKI expects a 3.5% drop in purchased consumption in 2024
In its late December publication, GKI essentially confirmed its September forecast for 2023-2024. GKI lowered its inflation forecast from 18% to 17.7% in 2023 and from 7% to 6.5% in 2024, while the company expects the GDP to contract by 0.5% in 2023 and expand by 2-2.5% in 2024.
This article is available for reading in Trade magazin 2024/2-3
The fact that the Hungarian economy is expected to contract by only around 0.5% in 2023 is due to an agricultural GDP growth of around 60%. GKI hasn’t changed its forecasts for household consumption at -1.5% (but from this purchased consumption standing at -3.5%) and +2% in 2024.
As regards inflation, the 6.5% projected for 2024 is only a little higher than the government’s 6% prediction, but the main difference is in how inflation will develop: GKI expects inflation to fall very modestly between 2023 and the end of 2024. The Central Bank of Hungary (MNB) has been following a very cautious interest rate policy for a year now. In 2023 the general government deficit won’t just be higher than previously expected by GKI, but at 5.7% probably also higher than the government’s forecast of 5.2%. //
Related news
GKI: Do Hungarians really pay a lot of taxes?
In public discourse, we often encounter criticism of high domestic…
Read more >6 out of 10 companies are planning a price increase
According to the results of the April half-year business cycle…
Read more >In July, the economic index of the GKI barely changed
According to a survey conducted by the GKI Gazdaságkutató –…
Read more >Related news
Valeo Foods Completes Acquisition Of Appalaches Nature
Valeo Foods Group has completed the acquisition of Appalaches Nature,…
Read more >Carrefour grows in France and Brazil, lags behind in rest of Europe
Carrefour says it is rather pleased with its financial results…
Read more >Food and beverage innovation plunges nearly 50% since 2007: Mintel
The market research firm said about a quarter of items…
Read more >