GKI forecast for 2021-2022 – Ahead of the parliamentary elections

By: Trademagazin Date: 2021. 11. 17. 10:53

GKI forecasts a 7-percent economic growth for 2021. In the first half of the year the increasing export surplus was the engine of growth, while in the second six months of 2021 consumption and investment are expected to drive growth.

In 2022 Hungary’s growth rate is likely to slow down to 5 percent. Since there will be parliamentary elections in 2022, the budget will encourage consumer spending. At the same time the expansion will probably slow down in every sector – with the exception of tourism. The consumption of households will reach the 2019 level, as in election years the government tends to increase the minimum wage and the real income.

As for the investment rate, it is still rather high at 27-27.5 percent. Then problem is that few projects seek to modernise the economy or society. The level of employment will rise 1 percent in 2021 and grow by 0.5 percent in 2022. This year one euro will cost 355 forints and next year around 357 forints. The inflation rate for 2021 is 4.7 percent and it is forecasted to be 4 percent in 2022. //