MNB: Economy continues to feel the weight of Russian crisis

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Hungaryʼs economic growth is expected to continue to slow due to the currency crisis in Russia, while the low oil price will also weigh on the countryʼs inflation rate, the National Bank of Hungary (MNB) warned again on Thursday. 

In its December inflation report, released Thursday, the MNB said this yearʼs inflation rate would fall to minus 0.2%, while next yearʼs would reach 0.9%, and it forecast GDP growth of 2.3% next year – lower than the governmentʼs projection of 2.5% – after 3.3% this year.

Hungaryʼs gross domestic product growth will slow in the coming two years but will still exceed 2%, Ernst & Young said in its quarterly forecast. The house expects Hungaryʼs GDP to rise by 3.2% this year, but it could slow to 2.3% next year and re-accelerate to 2.5% in 2016. This trend may be altered or even broken by a possible escalation of the Russian crisis," Ernst & Young said.

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