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Ecostat raises 2009 GDP contraction, inflation forecasts

Economic research institute Ecostat expects the GDP of Hungary to contract 6.5% in 2009, compared to 4.1% in the organization's March forecast, and the country's inflation rate to be 4.9% during the year, compared to 3.4% in its March forecast, Ecostat director Pál Bélyó announced.

Bélyó said that Ecostat expects retail consumption to decline 6.2% in 2009, while it expects investments to fall by 11.4%, exports to fall by 16.2% and imports to fall by 19% compared to last year.

The Ecostat director said the KSH research-arm expects Hungary's government deficit to be 3.8% of GDP in 2009 and the National Bank of Hungary's key-interest rate will drop to 8.5% at the end of the year.

Bélyó said that Ecostat expects Hungary's GDP to stagnate next year. (MTI – Econews)