In its latest World Economic Outlook, the IMF has cut its world economic growth forecast by 0.2 percentage points to 3.7 percent both this year and in 2019, mainly because trade disputes between the United States and its partners are beginning to show their effect.
Meanwhile, the Washington-based organization has increased by the same amount its growth forecasts for Hungary to four percent this year and 3.3 percent in 2019. This is the second consecutive upward correction by the IMF, as it has also increased its Hungarian growth forecast in its previous biannual report released in April.
The IMF expects Hungarian inflation to be 2.8 percent this year and 3.3 percent in 2019 after 2.4 percent last year, while unemployment is forecast at 3.9 percent this year and 3.5 percent in 2019, continuing a downward trend from 4.2 percent registered last year.
In its five-year forecast the IMF expected Hungary to show a GDP growth of 2.2 percent, annual inflation of 3 percent and a current account surplus of 1 percent in 2023.
The IMF’s World Economic Outlook is closely watched by both the public and private sector for its global forecasts.