ADVERTISEMENT

GKI still projects 1.5% economic contraction

Food

GKI is standing by its projection for a 1.5% economic contraction in Hungary this year, the research company said in its fresh forecast.

GKI said a decline in the farm sector would take a full percentage point off GDP this year. It added that layoffs at Finnish handset maker Nokia's base in Hungary and the grounding of national carrier Malév would also cause drag on the economy.

GKI projects household consumption will contract by 2.5%.

It sees investments falling 4%.

GKI said it was unlikely Hungary would meet the 2.5%-of-GDP general government deficit target for 2012. Instead, it put the gap around 2.9%, citing pressure on the government to keep the deficit under 3%. GKI said measures adding up to HUF 200 billion-300 billion would be necessary during the year to shore up the gap.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

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.