Kopint-Datorg lowers forecast for GDP growth, raises inflation projection
Economic research company Kopint-Datorg Zrt has lowered its projection for Hungary's GDP growth for 2006 and 2007, while raising its inflation forecast.
In its latest projection published on Wednesday, Kopint-Datorg lowered its projection for GDP growth in 2006 to 4% from 4.3% forecast in July. It lowered the forecast for economic growth in 2007 to 2.8% from 3%. The research company projects investments will increase just 2% in 2006, compared to an earlier forecast 5.9%, while rising 2.5% in 2007, down from the earlier projected 4%. It has lowered the projection for growth of domestic consumption to 1.3% from 2.5%. The projection for 2007 shows domestic consumption falling 0.6%, as opposed to the earlier projection of a 1% rise.
Kopint-Datorg puts the current account deficit for 2006 at €6 billion, up from the earlier forecast €5.6 billion. The projection for 2007 was lowered, however, to €4.5 billion from €5 billion. The projection for 2006 is equivalent to 6.7% of GDP and the forecast for 2007 is equivalent to 4.6% of GDP. It puts the general government deficit in 2006 at 10.1% of GDP and the deficit in 2007 at 6.8% of GDP.
Kopint-Datorg notes that it has used the Finance Ministry's targets rather than make its own projection, due to a lack of information.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.