International Monetary Fund raises Hungary GDP growth, inflation forecasts for 2017, 2018

Among the G7, the U.S. has the highest projected growth, with increases of 2.3% this year and 2.5% in 2018, unchanged from the IMF's outlook in January.

The IMF said in the report: "The 0.9 percentage point upward revision to the 2017 forecast...reflects the stronger-than-expected performance of the UK economy since the June Brexit vote, which points to a more gradual materialization than previously anticipated of the negative effects of the United Kingdom's decision to leave the European Union".

The IMF's recent projections exceed the Hungarian ministry's projections for 1.6% average annual inflation in Hungary in 2017 and 3.1% in 2018.

The Saudi economy is expected to expand 1.3 percent in 2018, down from a 2.3 percent projection in January, the International Monetary Fund said in its World Economic Outlook report on Tuesday.

The IMF's global growth estimate is 3.5% for this year and 3.6% for 2018, up from 3.1% last year. The IMF predicts that Australia's unemployment will drop from its current rate of 5.9 percent to 5.2 percent this year as economic growth rockets from 2.5 percent to 3.1 percent. It maintained the 2018 growth forecast for those economies unchanged at 2 percent. After gaining speed in the fourth quarter of 2016, the International Monetary Fund now envisions growth momentum to persist, it said in the spring edition of its twice-yearly World Economic Outlook.

Overall, Europe will register a 2 percent economic growth, and emerging Europe, a region also including Romania, will register a 3 percent advance in the GDP.

The outlook also explained how Nigeria will return to growth after an economic decline of 1.5 percent in 2016.

Speaking at the ongoing IMF/World Bank Spring Meetings in Washington, the Assistant Director and Head of Fiscal Policy and Surveillance Division of the IMF, Catherine Pattillo, said the ERGP is very acceptable.

In advanced economies, the pickup is primarily driven by higher projected growth in the United States, where activity was held back in 2016 by inventory adjustment and weak investment.

But structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside, especially over the medium term, remain important challenges.

The report contains the main forecasts for Hungary without added comment. The report's authors say slow and unequal income growth, meager growth in productivity, the financial crisis, and other problems have generated political support for "zero-sum" approaches to trade.

  • Zachary Reyes