BUDAPEST: Hungary's annual growth could accelerate to slightly above 4 percent in the third quarter on the back of strong wage growth and a rise in consumption and lending to small and medium-sized firms, central bank director Barnabas Virag said on Thursday.
The NBH, which left interest rates on hold on Tuesday, has maintained its growth projection of 2.8 percent for this year despite a slowdown in the first quarter to 0.9 percent. It expects 3 percent growth in 2017.
Virag also said the NBH was closely monitoring the British vote on EU membership and related market developments.
"The NBH is prepared, and it will take all (necessary) steps to preserve and ensure the financial stability of the Hungarian economy," Virag told reporters.
The bank projects this year's budget deficit at 1.6 to 1.8 percent of economic output, which will widen to 2.4 percent in 2017 when the budget will "markedly fuel demand," the bank said.
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