ADVERTISEMENT

IMF projects Hungary’s economy will grow 0.3% in 2012

MNB

The International Monetary Fund projects Hungary’s economy will grow 0.3% in 2012 and 1.5% in 2013, an annual country report published on Wednesday.

The IMF projects Hungary’s fiscal deficit as a percentage of GDP will exceed 3% in both 2012 and 2013.

A last-minute addition attached to the report by the IMF staff on January 13 puts the general government deficit at 3.9% of GDP this year and at 4.l% in 2013.

The deficit ratio projections were raised by 0.4 percentage point for both years compared to the December version of the report. The main reason for the higher deficit projections were the costs of an agreement struck with banks on FX mortgage repayments and the cost of wage compensation to ensure no Hungarians are left worse off by recent tax changes.

The IMF projects state debt will drop to 75.5% of GDP by the end of 2011 from an estimated 77.7% at the end of 2011. The debt ratio is set to drop slightly further to 75.1% in 2013.

The report projects annual average inflation will rise to 5% in 2012 (from 3.9% in 2011) before dropping to 3.7% in 2013.

It forecast a jobless rate of 11.5% in 2012 and slight drop to 11.1% in 2013.

ADVERTISEMENT

Average age of coronavirus patients declining Analysis

Average age of coronavirus patients declining

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

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.