UniCredit Bank has predicted in a quarterly regional forecast that economic growth in Hungary could reach 2.8 per cent both in 2016 and 2017. The growth could slow in the next two years compared to the current rate of growth because of lower EU funding and import growth outstripping export growth. Inflation should stay low, partially because of spillover effects from the eurozone, and the monetary policy of the National Bank of Hungary could loosen further. UniCredit notes that stable growth in the eurozone, low oil prices and the monetary loosening by the European Central Bank are creating favourable circumstances for growth for all East-Central Europe.
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