GKI sees slower economic contraction in 2012
Economic research company GKI on Friday said it expects Hungary’s economy to contract 1.5% in 2012, unchanged from a forecast last December.
GKI believes successful talks on precautionary financial assistance between Hungary and the International Monetary Fund and European Union can only slow the economic contraction. Recovering the confidence of money and working capital markets will only produce results in 2013 at the earliest, it added.
GKI projects household consumption will contract by 2.5% as real wages drop 3.5%.
It sees investments falling 4% because of a lack of financing and legal uncertainty.
GKI said it was unlikely Hungary would meet the 2.5%-of-GDP general government deficit target for 2012. Instead, it put the gap around 2.9%, citing pressure on the government to keep the deficit under 3%.
ADVERTISEMENT
POPIHN Raises Forecast for Fuel Consumption
Hungarian Lawmakers Ratify Finland's NATO Accession
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.
