MBH Bank predicts sustained economic growth of over 4 percent from 2024

By: Trademagazin Date: 2023. 07. 05. 14:39

The rate of economic growth may permanently exceed 4 percent from 2024, and inflation may decrease significantly during the second half of this year, MBH Bank experts said on Wednesday, at the credit institution’s press event in Budapest.

MBH Bank’s capital market analyst believes that the domestic labor market is even more stable than expected, that a turnaround in the development of real wages is expected by August, and that the decrease in inflation will support purchasing power. Márta Balog-Béki partly explained the favorable employment data by the fact that employers are trying to keep their employees, because it is more difficult to fire them and then find new employees.

At the same time, he noted that the structure of the labor market is still somewhat unfavorable, the qualifications of those waiting for a job often do not meet expectations, and they are not necessarily able to take up work where there is an opportunity. Meanwhile, the eastern part of the country is also struggling with a labor shortage, so new investments must be focused elsewhere.

The analyst expects an average annual wage increase of around 15 percent, and believes that the rise in real wages may reach 9 percent by the end of the year, the surplus can increase savings and consumption, he added.