Anthony Thomas, senior analyst in the ratings agency’s sovereign risk group, said a prediction by Hungarian Prime Minister Viktor Orbán’s government of 4%-6% growth through 2014 was probably too optimistic and would require more fiscal adjustments down the road.
“It’s got quite an ambitious target aiming for a deficit of 1.9% of GDP by 2014, but that is based on quite strong growth,” Thomas said at the conference. “It is just very difficult to see that materialising, which means that the government is probably going to have to take more measures in order to get the deficit down,” he added.
Moody’s downgraded Hungary to Baa3, one notch above “junk” with a negative outlook, in December.
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