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Hungary: Finance ministry expect deficit of Ft 13.5bln in October, inflation rate 6.4% in 2008

  Finance Ministry State Secretary László Keller said at a press conference in Budapest on Tuesday, that the ministry expects a budget deficit of Ft 13.5 billion (€50.82 million) in October, not including local-councils, and a inflation rate of 6.4% in 2008, compared to the previously forecast 6.5%.

 

Keller said that the finance ministry expects a January-October deficit of Ft 745 billion. The state secretary commented during the press conference that the effects of the global financial crisis had made themselves felt in October.

Hungary’s budget deficit was Ft 58.4 billion in September, compared to an expected Ft 80.5 billion, while the January-September deficit was Ft 731 billion, or 2.7% of GDP. Keller reiterated that the ministry expects Hungary’s GDP to grow 1.8% in 2008, while the budget deficit is expected to decline to 3.4% of GDP this year and 2.9% of GDP next year.

The finance ministry expects Hungary’s exports to grow by 7.6% in 2008, compared to the previously forecast 11.5%, while investment is expected to grow by 1% this year, compared to the previously forecast 4%. Domestic consumption is expected to grow by 1.1% in 2008, compared to the earlier estimate of 1.2%, while real wages are expected to rise 1.2% this year, compared to the previously forecast 0.7%.

The finance ministry expects inflation of 3.9% in 2009, compared to the previously forecast 4.3% with twelve-month inflation of 5% in December of this year and 3% in December 2009. (MTI-Econews)