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Hungarian economy on ?moderate growth trajectory?

Hungary?s GDP will grow by 3.8% in 2005, economic research institute GKI said in a general forecast for the year. The researchers expect exports to increase by 14% while the country?s industrial output might be 8% higher than in 2004. The national economy will be driven by exports and new investment. In GKI?s estimation, personal incomes before taxes will be 6%-7% higher than last year, while households? consumption will increase by 3.5%. The balance of state revenues and spending will improve only nominally, owing to lower borrowing costs. GKI expects the budget deficit to total 4.9% of GDP, or 4% including private pension fund payments. The external financing requirement of the country is believed to go under 8%. The study forecasts approximately 4% year-on-year inflation for the entire year as well as in December. The national economy is on a moderate growth trajectory, weighed somewhat down by setbacks in Europe?s economic recovery and the fiscal burdens of the upcoming elections in 2006.