Kopint-Tárki cuts GDP growth forecasts for 2011-2012

Analysis

Economic research company Kopint-Tárki on Wednesday said it lowered its GDP growth projections for Hungary to 1.5% in 2011 and 0.5% in 2012.

In its previous forecast, published in June, Kopint-Tárki put GDP growth at 3% for both 2011 and 2012.

The range for the projection for 2012 is 0-1%, but a worse scenario cannot be ruled out, said institute director Éva Palócz.

Kopint-Tárki raised its projection for annual average inflation in 2012 from 3.6% to 4.6%. It sees consumer prices climbing 4.0% in 2011.

Private consumption is expected to decline by 1% in 2012, while investments remain flat. Exports are set to rise 6% while imports climb 5%.

Kopint-Tárki did not give a projection for the general government deficit in 2010 because of uncertainty surrounding the details of tax changes.

Palócz said the "pushing back and forth" of fiscal items that add up to several hundred billion forints in the 2012 budget bill made any calculations difficult.

"If I had to give a projection, I think the accrual-based deficit would be 3-4% of GDP," she said when asked by MTI.

ADVERTISEMENT

Global GDP growth expected to be fastest in over 40 years Analysis

Global GDP growth expected to be fastest in over 40 years

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.