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Hungary seen in euro ahead of peers after reforms

Hungary's prospects of entering the eurozone ahead of its regional peers have improved due to structural reforms implemented over the past year, London-based emerging markets analysts said on Friday.

In its latest convergence research note, JP Morgan said that "while the rest of the world" has loosened fiscal policy, Hungary cut its structural deficit by close to 3% of GDP last year. As a result, Hungary "is in a unique position" of not being required to cut its structural deficit as growth recovers.

"We currently expect Hungary and Bulgaria to adopt the euro in 2014, one year ahead of Poland and the Czech Republic .... our base case for Romania's EMU entry is 2017", JP Morgan said. (MTI-ECONEWS)