A top feeling

In 2020 economic growth was around 5 percent in Hungary, and this was one of the top growth rates in the EU. For 2020 GKI calculates with a 3-3.5 percent GDP growth. In 2019 the level of industrial production jumped 6 percent, and for 2020 plus 4.5 percent is expected in this respect. This year retail sales are likely to slow down to 5 percent from last year’s 6-percent level.

Last year the level of employment kept growing and reached 70.3 percent in the second half of 2019. The unemployment rate dropped to 3.3 percent by the 4th quarter of 2019 – this is one of the lowest unemployment levels in the EU. In December 2019 the inflation level jumped to 4 percent, which was the highest in the EU. GKI’s prediction is that the inflation rate will be around 3.5 percent in 2020.

Due to the big December spending – 37 percent of the annual deficit was produced in this month – the budget deficit exceeded the target level by more than 20 percent; at nearly HUF 100 billion, it was also more than the December forecast of the Ministry of Finance. This makes it improbable that the 1.8-percent GDP deficit target will be met (which would be one of the highest in the EU). Consumption growth is expected to be 4 percent in 2020. //