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Ministry: IMF 2013 forecast for Hungary too pessimistic

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The National Economy Ministry believes the GDP, inflation and unemployment forecasts for Hungary contained in the latest International Monetary Fund World Economic Outlook, published on Tuesday, are too pessimistic, the ministry told MTI on Wednesday.

According to the official ministry statement, recent macroeconomic data suggests that the IMF's forecast of 0.2% GDP growth in Hungary this year is too low, going on to note that further utility-fee cuts and the expansion of the Funding for Growth program will increase domestic demand throughout the remainder of this year.

The ministry stated that January-August data indicates that the IMF's forecast of annual inflation of 2.3% this year is too high, adding that this fall's further reduction in utility fees could lower December inflation to an all-time low. The National Economy Ministry asserted that the IMF's forecast of 11.3% annual unemployment is too high in light of the steadily declining unemployment rates in Hungary over the first eight months of the year.

Finally, the ministry publicly reckoned that the presumably inaccurate 2013 forecasts for Hungary in the latest IMF World Economic Outlook call the organization's 2014 economic forecasts for the country into doubt because the latter are based on the former.

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