Economic think tank Kopint-Tárki projects Hungary's economy will contract 1.3% in 2009, compared to a forecast for 2% growth in September, CEO Éva Palócz said.
The 2009 budget projects a GDP contraction of 0.9%.
Kopint-Tárki lowered its projection for 2009 CPI to 3% from 4.2%.
It projects a 3% decline in household consumption, compared to an earlier forecast 2% increase. It projects investments will stagnate, compared to the earlier forecast of 5% growth.
Industrial output and foreign trade will practically stagnate, as exports increase 1% and imports remain flat next year. Kopint-Tárki puts the current-account deficit at €2.7 billion in 2009, down from the earlier forecast €3.7 billion.
The think tank projects the base rate will fall to 7.00% by the end of 2009 from the current 10.50%. It puts the average 2009 forint/euro rate at 255.
Kopint-Tárki projects an ESA'95 general government deficit of 2.6% of GDP. The projection is in line with the government target. (MTI – Econews)