BUDAPEST, May 8 (Xinhua) -- The European Commission (EC) has raised Hungary's GDP growth forecast to 3.7 percent for 2019 and 2.8 percent for 2020, according to official sources here Wednesday.
"The EC has raised its projection for Hungary's GDP growth to 3.7 percent this year, from 3.4 percent previously in its latest quarterly forecast," the Hungarian government announced.
The EC also raised the forecast for next year's growth to 2.8 percent from 2.6 percent previously.
The Hungarian government is more optimistic, as its official estimation for both years is currently at 4.0 percent.
The EC acknowledged that Hungary's economy grew at a pace of 4.9 percent in 2018, driven by construction investments, but warned that the expansion cycle was nearing its limits.
"Growth is set to lose momentum as capacity constraints limit the further expansion of domestic demand, while external demand remains subdued," the EC said.
Hungary has an open, export-oriented economy, relying mostly on the automotive and the electronics industries. A slow-down in its main export market, Germany, could have a negative effect on its performance.
