In his latest report, the Hungarian GKI Economic Research Institute improved its forecast for this year’s GDP growth, from 4% to 4.3%, the V4 news agency reported.
Based on their analysis, April-May data suggests that the growth of the Hungarian economy started slowing down in the second quarter compared to the record speed of the first quarter. However, the slowing down was less than expected, and it seems that good weather will help agriculture more than before. This is why GKI increased this year’s GDP growth forecast from 4% to 4.3%.
After the peak in 2017, the pace of salary growth gradually slowed down by 1.5 percentage points each year, and inflation accelerated by approx. 0.5 percentage points. Thus, real salaries fluctuated from the 10% pace in 2017 to 8% in 2018, and this year, still extremely high, 6-6.5%, tendencies are expected.