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Investments unlikely to improve noticeably in 2010

Investments are not likely to improve noticeably in 2010 after plunging in 2009, analysts told MTI on Friday after the Central Statistical Office (KSH) published fresh data.

Investment volume in Hungary fell 11% in Q4 from the same period a year earlier and were down 8.6% for the full year, KSH said in the morning.

K&H bank chief analyst György Barcza blamed the worse than expected data on the construction industry and the real estate market. There were no big segments that could improve the headline figure, he added.

Investments are likely to fall another 5%-6% in 2010, Barcza said.

György Barta of CIB Bank said the squeeze on corporate lending and falling domestic demand were behind the drop. He projected a 2% fall in investments for 2010. (MTI-Econews)