UPDATE - Takarékbank lowers Hungary growth projections


Takarékbank has lowered its projections for GDP growth in Hungary to 1.7% for 2011 and 1.5% for 2012, department head Zoltán Ádám said at a press conference on Thursday.

The bank's analysts expect GDP growth to pick up to 2.5% in 2013, Ádám said.

In a projection issued in May, Takarékbank put GDP growth at 3% for 2011 and 3.6% for 2012.

Takarékbank sees the average annual unemployment rate reaching 11% this year, then falling to 10.6% next year.

It puts average annual inflation at 3.8% for 2011 and 4.4% for 2012. The increase in the main VAT rate from 25% to 27% could temporarily push the twelve-month CPI above 5% at the beginning of next year.

The central bank base rate is expected to stay on hold at 6.00%, although tightening cannot be excluded if the forint weakens significantly or Hungary's risk premium rises.

Ádám said Hungary's bank system would rack up a HUF 250bn loss, or about 1% of GDP, if one-fifth of borrowers avail of an early repayment scheme for foreign currency-denominated mortgages at a discounted exchange rate.


POPIHN Raises Forecast for Fuel Consumption Energy Trade

POPIHN Raises Forecast for Fuel Consumption

Hungarian Lawmakers Ratify Finland's NATO Accession Parliament

Hungarian Lawmakers Ratify Finland's NATO Accession

Nolato Partners With Happy at Work HR

Nolato Partners With Happy at Work

Sümeg Castle Reopens History

Sümeg Castle Reopens


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.