GKI forecasts a slowdown in economic growth

In 2021 the Hungarian economy was moving on a better growth path than the annual budget’s expectation had been. At the same time the balance conditions turned much less favourable than planned, the inflation rate and the budget deficit rose, the forint weakened and the external balance became considerably negative.

After the 6.7-percent GDP growth in 2021, plus 4.7 percent is forecasted for 2022. Last year the average real wage grew by 3.5 percent and the real old age pension augmented by 4 percent. As for the real income, it was 4 percent higher in 2021 and the level of consumption increased by 3.5 percent. In 2022 gross wages are expected to rise by 14 percent – this means 8-9 percent higher real wages. The real value of old age pensions will increase by 6 percent and consumption will grow by 4.5 percent.

The investment level was up 8 percent in 2021 and will increase by 4 percent in 2022. In both 2021 and 2022 the inflation rate is around 5 percent. One euro will cost approximately 360 forints in 2022 and the interest rate can reach 4.5 percent by the autumn. //