BUDAPEST, Oct. 22 (Xinhua) -- The International Monetary Fund (IMF) has lowered its growth forecast for Hungary, projecting a 1.5 percent GDP rise for 2024, down from its earlier estimate of 2.2 percent, according to its latest World Economic Outlook published Tuesday.
Forecast for the country's GDP growth for 2025 has also been revised down to 2.9 percent from the previous projection of 3.3 percent.
However, the average annual inflation rate is expected to decline significantly from last year's 17.1 percent to this year's 3.8 percent and further down to 3.5 in 2025. The jobless rate is set to gradually decrease from 4.4 percent in 2024 to 4.2 percent in 2025. Hungary's current-account surplus is predicted to shrink, from 1.6 percent of GDP in 2024 to 0.6 percent in 2025.
Hungary's Ministry for National Economy has unveiled a new economic action plan to address the challenges posed by global economic turbulence, emphasizing the need for new policies to ensure steady growth, with a target of 3-6 percent growth in 2025, reported Hungary's official Gazette Tuesday.
The action plan will focus on increasing purchasing power, affordable housing and the growth of small- and medium-sized enterprises. Key measures include a three-year wage agreement, the launch of a workers' credit program, and a phased doubling of the family tax allowance.
"The government will work towards inclusive recovery, ensuring that a broad segment of society, particularly families and small businesses, benefits," the ministry said in a statement.
