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Low investments project shrinking growth - Hungary

Data on investments reveal unfavorable tendencies, regarding both future aggregated demand and later production opportunities, researcher for the Central Bank (MNB) Péter Gál said.

However, whether the problem is temporary, or there exist grater structural problems that translate into a deteriorating Hungarian competitiveness is unclear, Gál added. In Q1 2007 the volume of national economic investments exceeded that of Q4 2006 by 2.6% adjusted by seasonal and working day factors, while growth was 0.8% compared to Q1 2006. Last year the volume of investments decreased by 2 %, unprecedented in the past two decades. This will make catching up with the current European economic activity definitely harder, Gál said. (Napi Gazdaság, Magyar Hirlap)