The forecast of GKI Economic Research Co. for 2014

Although Hungary came out of recession this year, its economy did not follow into a trajectory ensuring sustained fast and healthy growth. This year’s recovery is based almost only on temporary sources: a favourable base as a result of last year’s decline, great agricultural harvest due to weather factors much better than in 2012, public investments accelerated in order to absorb EU funds, consumption revitalized by unsustainable overhead reductions. This situation may survive until the elections; however, the unchanged adverse business, legal and investment environment, causing an increasing lag compared to neighbouring countries, will again restrain the Hungarian economy from the second half of 2014. Appearances are improving, whereas the real situation remains unchanged.

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