GKI: the economy is slowing down

The growth figures in the beginning of the year indicate a slowdown in the Hungarian economy. GKI’s GDP forecast remained unchanged: after the 3.7 percent growth of 2014 and last year's 2.9 percent, expansion in 2016 is likely to be only about 2.3 percent, mainly due to the decline in investments – the GKI Gazdaságkutató Zrt. told.

GKI’s forecasts points out that the international forecasting institutions reduced their forecasts further for Hungary's economic dynamics in recent months as well as their economic expectations. The main reason behind this slowdown is not export deceleration, but a lower investment of around 5 percent, due to the decrease in EU subsidies and the low investment willingness of the business sector. (MTI)