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Hungary structural deficit to continue on declining path

Hungary's structural deficit will continue on a declining path, National Economy Minister György Matolcsy said, speaking about the country's updated convergence program.

The program shows a general government surplus of 2% op GDP in 2011 (resulting from the one-off item of the transfer of private pension fund assets) and deficits of 2.5% in 2012 and 2.2% in 2013, Matolcsy said.

Hungary's government projects economic growth will pick up to an annual 3-4% in 2013 and 2014 under a pessimistic scenario contained in the updated convergence program. The updated program shows an optimistic projection of 4-6% GDP growth in 2013 and 2014, Matolcsy said.

The government shares the view of the National Bank of Hungary which projects year-on-year inflation could fall to 3% by the end of 2012, Matolcsy said.