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Bigger-than-expected drop in industrial output worsens outlook for 2009

A bigger-than-expected decline in November industrial output worsens the outlook for this year's GDP, analysts told MTI.

Hungary's industrial output fell a workday-adjusted 10.1% in November from the same month a year earlier, the Central Statistical Office (KSH) said.

Erste Bank's Orsolya Nyeste, who had projected an 8% drop in industrial output in November, said the fast decline continued in the fourth quarter, worsening the outlook for 2009 GDP.

Raiffeisen Bank's Zoltán Török said the government's projection for a 1% contraction of the economy in 2009 is too optimistic: the economy could shrink as much as 2.5%. The November industrial output figures do not yet show the recession has bottomed out. “One can't count on anything good,” he said. (MTI – Econews)