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Govt scales back growth projections in 2012 budget bill

Hungary's government has scaled back projections for economic growth in the 2012 budget bill compared to forecasts in the country's updated Convergence Program submitted to Brussels in April.

The Convergence Program, based on the Széll Kálmán Plan, a restructuring program, put GDP growth at 3.1% in 2011, at 3.0% in 2012, at 3.2% in 2013, at 3.3% in 2014 and at 3.5% in 2015.

The budget bill shows projections of 1.9% GDP growth in 2011, 1.5% in 2012, 2.9% in 2013, 3.1% in 2014 and 3.0% in 2015.

The budget bill projects household consumption will grow 0.7% in 2011, stagnate in 2012, increase 1.4% in 2013, 1.7% in 2014 and 1.4% in 2015.

The Convergence Program saw household consumption rising 3.1% in 2011, 2.2% in 2012, 2.4% in 2013, 2.5% in 2014 and 2.7% in 2015.

The budget bill projects investments will contract 2% in 2011, before growing 3.2% in 2012, 5.4% in 2013 and 5.2% in 2014 and 2015.

In the Convergence Program, investment growth was set to reach 5.7% in 2011, 5.3% in 2012, 6.0% in 2013, 5.7% in 2014 and 5.8% in 2014.