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EcoMin: Hungary may cut growth forecast

  Hungary may need to cut its growth forecast if major European economies contract more than previously thought, Hungarian economy minister Gordon Bajnai said on Wednesday, Reuters reported from London.

“If Germany, Italy, France and Austria contract more than before, we will need to adjust our forecast,” Bajnai told reporters in London.

Hungary forecast a 3-3.5% economic contraction this year.

Bajnai said he “would not like to speculate” on the strength of the forint, which has hit record lows in recent weeks, although he said analysts had described it as undervalued.

The weakening in the forint made Hungarian exports more competitive, but at the same time it could cause problems, Bajnai said according to Dow Jones, referring to the large proportion of foreign-currency denominated loans.

Rather than worrying about the level of the currency, “Hungary should demonstrate economic policies that bring back investor confidence in its ability to grow,” he said.

Bajnai was in London to attend a conference, to meet investors and UK officials. (MTI-Eco)