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Chances of rapid growth in 2021

August 5th, 2021

An economic analyst thinks that Hungarian GDP growth may exceed 6 per cent only if the inflation rate is kept under control and there is no new major coronavirus outbreak.

In Portfolio, Zoltán Matheika, analyst of the Kopint-Tárki Institute for Economic Research ponders the chances of “turbo-recovery” for Hungary. Matheika recalls that as growth data for the first quarter of 2021 exceeded expectations, analysts increased their projections of Hungarian GDP growth to 6.3 per cent in 2021, while one in four expects higher than 7 per cent growth. Matheika acknowledges that the data is promising, but points out that the investment rate and household consumption have not fully recovered to pre-Covid levels. He concludes that Hungary can only maintain rapid growth in 2021 if inflation is kept under control and if it escapes a fourth wave of the coronavirus pandemic.

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