MFB Periscope June 2017

The MFB Periscope is a monthly report published by the Hungarian Development Bank. Its aim is to analyse the most recent trends in the real economy and financial markets and to discuss also actual topics concerning the Hungarian economy and its broader economic environment.

MFB Periscope June 2017

Focus

 

 Economic growth in Hungary in the first quarter of 2017

 

A low basis and widely accessible EU funds caused Hungary’s economic growth to accelerate in the first months of 2017. Growth was driven by industry, construction and the services on the side of production, while on the expenditure side growth it was pulled primarily by the gross fixed capital formation, together with consumption and net exports. 

Economic growth may accelerate this year in comparison to 2016: in line with our expectation indicated earlier on, consumption reached the pre-crisis level in 2017 Q1, and corporate expectations also reflect optimism of an intensity not witnessed for years now, in relation to domestic sales in 2017. Hungarian businesses are expecting trends of improvement in relation to this year’s performance in the export markets as well. Investments are also going to be powered by increasingly widely accessible EU funds during the coming months, along with a new increase in lending and growing propensity to invest. Based on the first five months’ growth indices economic growth of some 4-6% may be expected for this year, provided the existing economic confidence continues to stimulate business activities.

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