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)
