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Hungary's GDP growth is expected to slow from 3.9% in 2006 to 2.6% in 2007, while inflation is expected to pick up from 3.7% in 2006 to 6.4% in 2007, according to the latest projection by economic research company Pénzügykutató Zrt published on Thursday.
Pénzügykutató lowered its earlier forecast for investment growth in 2006 to 4.5% from 7.5%, and it put investment growth in 2007 at 3.5%. It expects household consumption will rise 2.6% in 2006 and fall by 1% in 2007. Real wages will rise 4% in 2006 but fall 4% in 2007, according to the research company.
Pénzügykutató forecasts an ESA 95 general government deficit of 10.1% of GDP in 2006 and 6.8% of GDP in 2007, in line with the convergence program.