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GKI has lowered its GDP growth projections for Hungary in 2011 and 2012, projecting 1.5% growth for this year and a 1.0% contraction for 2012, the economic research company said in a fresh analysis.
GKI chairman András Vértes said that even though global and European economies have weakened as well, domestic economy policy serves to further deter investment.
The researchers said that economic prospects could worsen further if a large number of people with foreign-currency-denominated loans choose the option of early repayment at below-market exchange rates.