Hungary: GKI forecasts improvements


In 2008 both domestic and external budget balances will be considerably improved; real wages in the business sector have already started to grow; at the same time inflation and the forint base rate continue to be high, forecasts the economic research institute GKI Zrt in its most recent prognosis.

The annual budget deficit is likely to be 3.8% of GDP, lower than planned in the budget law (4%). Indeed, it might possibly reach 3.6%, the level at which, if calculated with pension fund adjustment, the excessive deficit procedure is cancelled, says the prognosis.

Over 40% of the balance adjustment carried out so far comes from increased public duties (20% wage and 20% material expenses), and 15% from curbing investments.

Foreign trade balance is expected to see further improvement. The annual current account deficit will likely come to €3.5 billion, 3.2% of GDP, as against 4% in 2007.

Inflation, expected at 6.5% in 2008 and 5.5% at the end of the year, is mainly fueled by global prices, rather than the adjustment program, say GKI experts. (Napi Gazdaság)


Orlen Enters Hungarian market Energy Trade

Orlen Enters Hungarian market

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Home Sales Set to Reach 8-year Low Residential

Home Sales Set to Reach 8-year Low

MTÜ Launches Int'l Campaign for Hungarian Spas Tourism

MTÜ Launches Int'l Campaign for Hungarian Spas


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.