GDP growth lower, inflation higher than expected

Factory Hungary
MTI/Tamás Vasvári
Economic research firm Kopint-Tárki has lowered its forecast for 2021 GDP growth to 6.1 percent from 6.8 percent in a projection released in the autumn, the firm’s chief executive Éva Palócz said on Wednesday.
 
Finance Minister Mihály Varga said last week that this year’s GDP growth was targeted at 6.0-6.5 percent. Kopint-Tárki forecast average annual inflation at 5.5 percent this year, higher than 5.1 percent projected by the National Bank of Hungary (NBH).
 
Output of Hungary’s construction sector rose by an annual 14.5 percent in October, the Central Statistical Office (KSH) said on Wednesday.
 
The pace of the increase edged up from 14.2 percent in the previous month.
 
Output of the building segment climbed by 19.7 percent and civil engineering output increased by 9.7 percent. In a month-on-month comparison, construction sector output rose by 1.1 percent, adjusted for seasonal and workday effects.
 
In absolute terms, output reached 518.6 billion forints (EUR 1.4bn) in October. The building segment accounted for 60pc of the total.

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