GKI: balance-worsening changes are about to start
This year’s economic growth is slower than last year’s 2.9-percent expansion, due to less funding from the EU and fewer government investments. Just like in the 1st quarter of the year, in the 2nd quarter of 2016 the level of investments dropped 8 percent. In the first 5 months of the year gross wages rose by 6 percent and real wages were up 7.5 percent. Retail sales expanded by 5 percent, while prices practically stayed put in the first half of 2016. These trends may entail a consumption growth above the 4-percent level of the 1st quarter.
Industrial output increased by 3 percent in the first 5 months, while at annual level plus 3.5 percent is expected. In the 2nd quarter of 2016 the unemployment rate dropped to 5.1 percent – a level 1.8 percentage points lower than a year before. However, in the last few months a balance-worsening change has started in the country’s economic policy: instead of reducing the budget deficit to 1.7 percent of the GDP, the 2017 budget contains an increase to 2.4 percent. According to the convergence programme, by the end of 2016 the GDP-proportionate budget deficit should reduce from 75.3 percent to 74.5 percent.
Related news
VIMOSZ: optimism in the tourism sector
Persisting optimism characterizes the Hungarian tourism sector, the players of…
Read more >20 years of Hungary in the EU: how has the forint exchange rate changed?
On May 1, 2004, ten new states joined the European…
Read more >Industrial production decreased, food, beverage and tobacco production increased
In May, the volume of industrial production was 5.2 percent,…
Read more >Related news
Recent research: almost half of Hungarians do not use sun protection cream, and moreover, they do not avoid the sun in the midday hours either
According to a recent, representative research, only 8 percent of…
Read more >The GVH fined Booking almost HUF 400 million with a record fine
Booking did not fully fulfill its obligations requiring the termination…
Read more >K&H: carbon dioxide emissions do not decrease by themselves
In the absence of a sustainability strategy and concrete carbon…
Read more >