In what environment can the Hungarian economy operate and how can it perform in the next year and a half? Let's discuss this with experts and decision-makers at the Budapest Economic Forum!
The central bank’s optimism is primarily due to the boom in tourism. The institution has improved its forecast for the second time this year, having originally expected growth of just 1.9 percent. It is worth noting that the Spanish economy grew by 2.5 percent last year.
We wrote about the excellent performance of the Spanish economy and its reasons in our great analysis:
According to the central bank report, the growth rate in the third quarter is expected to decline to 0.6 percent compared to an increase of 0.8 percent in the previous quarter. The institution also revised its medium-term forecast upwards: GDP growth is expected to reach 2.2 percent in 2025 and 1.7 percent in 2026.
The more positive economic outlook also has a positive impact on the country’s debt. According to the central bank’s forecasts, the debt-to-GDP ratio could fall to 105.4 percent by the end of the year instead of the previously expected 105.8 percent.
The Spanish central bank is more optimistic about inflation. It expects inflation to reach 2.9% this year instead of 3% last year, while it expects a gradual decline over the next two years to 2.1% and 1.8% respectively.
Cover image is an illustration. Cover image source: Getty Images
