The GKI has improved this year's growth forecast

The GKI Economic Research Co. has improved this year's economic growth forecast. According to its most recent forecast the GDP in 2014 will increase by 3 percent, and the next year it may grow by 2 percent, while the new burden affecting the banking system will significantly impair the development prospects – Vértes András, GKI President told at a press conference on Monday in Budapest.

The forecast calculates with with a deficit below 3 percent in 2014 as well as in 2015, but a real reduction in the state debt, however, can not be reached – he added.

According to the GKI, the inflation this year will rise around one percent in a monthly comparison, but in 2014 it can be around 0.3 percent on average, due to the world market developments and due to the “artificial overhead reduction” which, however, can not be sustained in long terms – Vértes András told, adding that in 2015 consumer prices may grow by an average of 2.5 percent.