From Stagnation to Growth: Economic Revival Predicted for Next Year [Video]

The Hungarian economy may expand at a slow pace of below 1% this year, partly due to the unfavorable international environment, but it could pick up and expand by more than 3% next year, according to the latest macroeconomic forecast by CIB Bank analysts.

Since the bank’s last forecast in May, the outlook for growth in the euro area has become gloomier, also weighing on the performance of domestic industry. Moreover, the deep crisis in the manufacturing sector is not forecasting a rapid improvement. Activity in the services sector is also sluggish, and the first cracks are starting to appear in the labor market, writes Világgazdaság.

Germanyis still a laggard among the major economies, but inflation has already reached the central bank’s 2% target in October, thus a normalization of monetary policy is both necessary and possible, and the European Central Bank could cut its benchmark interest rate by another 25 basis …