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25th March, 2021

Penzugykutato sees 3.8% GDP growth

Hungary’s GDP may grow by 3.8% this year, if anti-pandemic restrictions can be eased in the summer, the consultancy Penzugykutato concludes in its latest forecast.

The budget deficit is projected to reach 7.7% of GDP, and the state debt to remain, after a slight decrease, at 80.2% of GDP.

Inflation will increase over 4% by the end of the year as the forint weakens further, according to the forecast.

Penzugykutato calculates that the government has approved pandemic crisis measures amounting to 30% of GDP, but says the aid has not been put to its best possible use.

The aid is not effective, the analysts say, because – based on its policy of supporting a work-based society – the government did not compensate workers for lost income, thereby ailing to stimulate demand sufficiently.

In addition, a large part of the government assistance has not been used for the intended goals of the programmes, Penzugykutato says. (portfolio.hu; telex.hu; nepszava.hu; novekedes.hu)

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