GKI forecasts slower growth

In 2014, the performance of the Hungarian economy was much better than anticipated by anyone. Nevertheless, in a forward looking perspective, it did not reach a trajectory that ensures sound caching-up by Central and Eastern European standards.

The spectacularly favourable statistical figures of 2014 are attributed to temporary factors and/or unduly heavy sacrifices made in other fields. The extension of the model aiming at the roll back of the market economy and the increase of buy-outs of private companies by the government is continuing. The objective of the government is to strengthen its political power whose scope is increasing and the position of its preferred social and business groups. The government faced sharp conflicts with the EU, the US, several social strata as well as domestic and foreign business groups. As a consequence of these factors, the performance of the Hungarian economy is predicted to weaken significantly in 2015 compared to 2014.

In 2014, the performance of the Hungarian economy was much better than anticipated by anyone. Nevertheless, in a forward looking perspective, it did not reach a trajectory that ensures sound caching-up by Central and Eastern European standards. The spectacularly favourable statistical figures of 2014 are attributed to temporary factors and/or unduly heavy sacrifices made in other fields. The extension of the model aiming at the roll back of the market economy and the increase of buy-outs of private companies by the government is continuing. The objective of the government is to strengthen its political power whose scope is increasing and the position of its preferred social and business groups. The government faced sharp conflicts with the EU, the US, several social strata as well as domestic and foreign business groups. As a consequence of these factors, the performance of the Hungarian economy is predicted to weaken significantly in 2015 compared to 2014.