Hungary's industrial and trade data are improving as the country's export market recover, but the construction sector, retail and unemployment data continue to worsen, economic think tank GKI said in a projection prepared with Erste Bank.
GKI expects Hungary's economy to stagnate in 2010, following a contraction in 2009, as external demand picks up, European Union funding boosts investments, sentiment among the country's economic players improves and businesses start restocking inventories.
GKI projects industrial output will climb 3%-4% and the construction sector will expand 3% in 2010. Farm sector output will probably be flat and retail turnover will continue to fall.
Investments are seen inching up 3%. Household consumption is expected to fall 1.5% even as net wages climb 7.5% and real wages rise 3%.
Household's net savings rate is expected to rise to 4%.
The employment rate will probably drop by 1%, while the unemployment rate rises to around 12%. (MTI-Econews)