GKI lowers inflation projection further on govt price cuts
Economic research company GKI now expects inflation to slow even further than before this year because of government reductions of household utilities prices.
GKI said in a fresh projection on Monday that average annual inflation would fall to 4.5% this year from 5.7% in 2012. GKI knocked down its projection for average annual inflation from 5.5% to 5% in mid-December, after the government announced a 10% reduction in household energy prices. In January, the government said water, sewage and rubbish pickup fees could also be cut. GKI forecasts real wages will rise about 1% this year.
GKI expects Hungary's economy will stagnate this year. It sees industrial output climbing 1% but domestic consumption edging down about 0.5%. Exports are set to rise 5% while imports climb 4.5%, according to GKI. It puts the unemployment rate at 10.7%, level with the rate in 2012. GKI calculates with a HUF/EUR exchange rate of about 285.
It sees the general government deficit rising to HUF 800 billion in 2013 from HUF 607.5 billion 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.