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Think-tank lowers growth forecast for 2009

Economic think tank Kopint-Tárki has kept is projection for Hungary's 2008 GDP growth unchanged at 2.2%, but lowered its projection for 2009 growth to 2.8pc in its latest forecast, down from 3.0% in the previous one published in June.

Kopint-Tárki continues to project average annual CPI of 6.5% in 2008 and 4.2% in 2009.

Kopint-Tárki head Éva Palócz said the think tank lowered its projection for industrial output growth in 2008 to 4.5% from 6.2%. Because of the economic slowdown, growth is not expected to pick up much in 2009 either, she added.

Kopint-Tárki projects household consumption will inch up just 1% in 2008. It sees investments expanding 2%, down from the earlier projected 3%. Investments are seen increasing 5% in 2009.

Kopint-Tárki lowered its projection for the 2008 general government deficit, calculated with EU methodology, to 3.7% of GDP from 4.0%. Next year, it sees the deficit narrowing to 3.4% of GDP. (MTI – Econews)