GKI: the drop in investments is slowing the Hungarian economy
The main reason for this year’s slowdown in the Hungarian economy will not be the deceleration of exports, but the around 5 percent lower investments – according to the GKI Economic Research Company.
According to their forecast sent to MTI they explain: because of the reduction in EU funds and due to the low business investment willingness, a decline is expected in investments. However, the consumption will slightly accelerate and may grow by 2.5-3 percent, due to the stronger wage growth and due to the around 0.8 percent increase in consumer prices, which is smaller than the 1 percentage point reduction in personal income tax. (MTI)
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