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World Bank forecasts 0.5% GDP growth in Hungary next year

Hungary’s GDP growth is expected to slow to 0.5% next year from 1.7% this year, the World Bank said on Wednesday in a prognosis for the newest EU countries.

Hungary is projected to grow at a slower pace than other countries in the region as domestic demand remains weak and exports are slowing down, the World Bank said.

The World Bank expects GDP to grow on average by 3.0% this year and 2.1% next year in the ten countries that joined the EU between 2004 and 2007.

Growth of the global economy is now losing momentum and the expansion of the euro area is expected to slow further in 2012. Since the "new countries" are closely linked to the euro-zone through production, trade, and finance, growth in the ten countries is also projected to weaken, but is set to remain higher than in the euro-zone, the World Bank said.