European Commission: the growth of the Hungarian economy will remain strong in 2018

The growth of the Hungarian economy will remain strong in 2018, but it is expected to slow down in 2019, as the construction industry’s opportunities will be more limited and due to the change in the minimum wage rise, consumption growth slows down – the European Commission’s spring economic forecast published on Thursday.

As stated, the tight labor market situation will gradually increase employment costs, while the strong demand may contribute to the shrinking the surplus of the current account balance. Growth is also supported by fiscal expansion, according to which the deficit will be around 2.4 percent of the GDP in 2018. (MTI)