City analysts cut Hungary growth forecast on euro impact, deleveraging

Tourism

Hungary's recession is set to be deeper than expected this year, owing to the deteriorating eurozone outlook and the ongoing deleveraging process, London-based emerging markets analysts said on Wednesday.

In its revised forecast for the Central and Eastern European region released to investors in London, Morgan Stanley said it now expects Hungary's economy to contract by 1.2% in 2012 against its previous call for a 0.3% fall. For 2013, Morgan Stanley now sees growth of just 0.7%, down from 1.7% in its earlier forecasts. "Weak growth will likely reinforce the NBH's desire to cut rates, and we now see rates falling all the way to 5%". The government projects GDP growth to slow from 1.7% in 2011 to 0.1% this year but to pick up to 1.6% in 2013.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

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.