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Hungarian gov’t prospects in doubt

The next year will not see any considerable economical progress; finance analyst Bálint Háda of Quaestor Pénzügyi Tanácsadó Zrt summarized his consultancy's expectations for 2008.

The risks mentioned about 2008 include a low rate of the economic growth, underestimation of wages and inflation, overestimation of the role of EU-resources and an unexpected base rate trajectory. The latter one might result in an underachievement of decreasing the budget deficit. Quaestor projects a 2.3% growth of the GDP (as against the government's 2.8% prognosis), a 5.2% inflation, a 5% budget deficit and a 7% base rate at the end of 2008. Gross wage rise would exceed inflation both this year and in 2008, Háda said. (Gazdasági Rádió)