Growing real wages, declining inflation rate
Monday, February 28, 2005, 12:51
According to the forecast of GKI Economy Research Rt in cooperation with Erste Bank, Hungarian economy and real wages will continue to grow with about 4%, like last year. The analysis says that Hungarian economy followed the path determined by exports and investments in 2004, the foreign trade deficit was smaller than in 2003. In 2004 real wages increased by 1% in the business sector, while in the budget sector they declined by 5%. GKI forecasts that the economy will grow by 3-3.5% this year, which is similar to the growth of real wages. The inflation rate dropped from 5.5% at the end of 2004 to 4.1% in January. Price rises will be similar and the price index is expected to fall under 4% in February. The lower inflation rate is due to the late price rise of energy in the second half of this year as well as low food prices following last year's good harvest.