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GKI sees deeper recession

  Economic think tank GKI on Wednesday said it sees Hungary’s economy contracting by 4-5% in 2009, more than the earlier projected 3.5% decline in GDP.

GKI sees investments falling 5% and household consumption dropping 4% in 2009.

GKI puts average annual inflation at 3.5% in 2009, but projects the central bank base rate will fall to just 8.5-9.0% from the current 9.5%.

GKI puts the general government deficit, calculated with EU accounting rules, at 3% of GDP.

GKI said the HUF/EUR exchange rate is likely to stabilize around 280 in the second half of the year. (MTI-Econews)