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Takarékbank expects GDP to grow 0.3% this year

Takarékbank expects Hungary's GDP to grow 0.3% in 2010 and 2.9% in 2011, Takarékbank senior analyst Gergely Suppan said.

Hungary's government projects GDP contraction of 0.3% in 2010. Suppan said that Takarékbank expects the eurozone GDP to grow 1.1% in 2010 and 1.8% in 2011. Bank analysts expect average inflation of 3.8% in 2010 and inflation of 2.6% at the end of the year. The National Bank of Hungary's base rate could fall to 5.5% by the time of national elections in April.

Suppan predicted that Hungary's unemployment rate will be 11.2% in the spring and average 10.8% for the year.

The Takarékbank analyst said that the government will likely be able to meet its projected deficit of 3.8% this year, adding that Hungary's debt as a proportion of GDP could shrink if the forint strengthens.

The forint will likely trade at around 260 to the euro at the end of the year. (MTI – Econews)