Analysts: 2014 deficit well under target
Analysts put Hungary's general government deficit, calculated according to European Union rules, at 2.4%-2.5% of GDP for last year, after the release of cashflow-based data from December.
Zoltan Reczey of Buda-Cash Brokerhaz said the data released late Thursday by the National Economy Ministry came as little surprise considering that releases in the past several months showed the official 2.9% deficit target was "easily achievable". He estimated the gap reached 2.5% of GDP for the full year.
K&H Bank senior analyst David Nemeth put the deficit for last year at 2.4%, noting that the government had continued to follow a conservative fiscal policy.
The economy ministry on Thursday said Hungary's cashflow-based general government balance, excluding local councils, came to HUF 825.7 bln for the full year of 2014, under the HUF 1,151.5 bln target. The ministry said the fresh data confirm the government's expectations, according to which the deficit as a percentage of GDP, calculated according to EU rules, could be smaller than the 2.9% target.
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.