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Pénzügykutató projects 0.9% GDP growth in 2013

Pénzügykutató projects Hungary's economy will contract by 0.8% in 2012 but grow by 0.9% in 2013, the economic research company said in a fresh forecast on Thursday.

The projection for 2013 is about half of the government's 1.6% GDP growth forecast. Pénzügykutató puts average annual inflation at 5.7% in 2012 and at 4.6% in 2013. The company said the government's 2.5%-of-GDP general government deficit target for 2012 is at risk because of weaker than targeted growth as well government decisions taken after the 2012 budget was approved. It put the gap for 2012 at 2.7%, calculating with the cancellation of free budget reserves. Without the cancellation, the deficit could reach 3.8%, it added.