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Ecostat, the research arm of the Central Statistics Office (KSH), expects Hungary's economic growth to slow to 2.5% in 2007 because of a fall in domestic demand, the latest monthly projection shows.
Household final consumption is expected to stagnate after an estimated 1.6% real-term rise last year, and investments will slow. EU funds, however, will compensate for some investments, boosting overall investment growth volume to 2.5% in 2007, the researcher said.
Ecostat expects inflation to continue to rise, peaking in the H1 of 2007, but slowing considerably in the H2 of the year. It puts annual average inflation in 2007 at 6.5%. (Mti-Eco, Bloomberg, Népszava, Magyar Hírlap)