Ecostat, the research arm of Hungary's Central Statistical Office (KSH), on Wednesday said it lowered its 2009 projections for inflation and the drop in investments, but stood by its forecast for the decline in GDP.
Ecostat lowered its projection for the drop in investments from 11.4% to 7.9% and it lowered its forecast for average annual inflation from 4.9% to 4.4%, but it continues to project a 6.5% fall in GDP. Ecostat sees household consumption falling 6.2%, exports slipping 11.1% and imports dropping 15.5%. Ecostsat expects the National Bank of Hungary base rate to fall to 7% by year-end from the current 8.00%. Ecostat puts the 2010 accrual-based general government deficit at 3.9% of GDP. (MTI-Econews)