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Financial research firm GKI on Wednesday upped its Hungarian economic growth forecast for January from 4.1% to 4.4%.
GKI said it expects annualised inflation of 2.3 percent in January.
The budget deficit this year is likely to be 5.7% of GDP, GKI said. The shortfall in 2005 was 6.1% and Hungary must cut the deficit to below 3% by 2008 to keep to the euro adoption target date of 2010. The January budget deficit came to between 4.5% and 5% of GDP, according to GKI's estimate, without taking into account pension payments.