Századvég cuts Hungary growth forecast
Economic research company Századvég Gazdaságkutató on Thursday said it cut its projection for GDP growth this year to 1.6% from 2.8% in a forecast in June.
Századvég lowered its projection for GDP growth in 2012 to 1.1% from 2.7% in the previous forecast.
The company expects household consumption to edge up 0.8% in 2011.
It puts average annual inflation at 3.8% in 2011 and 3.5% in 2012.
Századvég projects a general government surplus of 1.1% of GDP in 2011, although it notes that general government would run a 7.9% deficit without the transfer of private pension fund assets to the state. The government will be forced to undertake serious adjustments if it is to meet the 2.5% deficit target in 2012, Századvég said.
Századvég raised its projections for Hungary's current account balance to 2.4% of GDP in 2011 and 2.8% in 2012. It sees the trade surplus reaching €7.4bn in 2011 and €9bn in 2012.
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.