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EBRD knocks down Hungary growth forecasts for 2010, 2011

The European Bank for Reconstruction and Development (EBRD) lowered GDP growth projections for Hungary to 0.8% for 2010 and 1.7% for 2011 in a report.

Both forecasts were knocked down 0.4 percentage point from the previous projections published in July 2010.

The EBRD acknowledged the government's commitment to meeting budget deficit targets, but said the country's level of public debt remains “a key concern given weak growth prospects and the expiry of the EU/IMF program.” The government's “lack of articulation” of comprehensive spending reforms as well as extraordinary taxes on certain business sectors have “unsettled foreign direct investors, and may impact the country's growth potential,” it added. (MTI – Econews)