Hungary’s economy will grow by 2.3% of GDP in 2014 and by 2.1% in 2015, the European Commission said in its spring economic forecast released on Monday. The projection was raised from 2.1% in the EC’s winter forecast published in February. The new projection corresponds with figures in the government’s updated Convergence Programme sent to Brussels at the end of April. The budget deficit would come in at 2.9% of GDP this year and around 2.8% in 2015, below the 3% European Union threshold. The public debt would fall to 79.5% in 2015 from this year’s 80.3%, according to the commission’s figures. It said domestic demand would be the “main driver” of growth in both years, and put investment growth at 7.0% in 2014 and 4.3% in 2015. The EC included among risks to the forecast a weaker forint, a potential deepening of the Ukrainian crisis and a new relief scheme for households with foreign-currency-
denominated mortgages.
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