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Ministry takes issue with Fitch downgrade

Hungary’s government does not agree with an analysis of Hungary’s situation by Fitch Ratings, the National Economy Ministry said on Friday, after Fitch revised its outlook for the country’s sovereign rating to "negative" from "stable".

The ministry said the 2012 general government deficit target of under 3% of GDP is achievable, adding that 2.5% of GDP target for 2012 would be kept in spite of Fitch Ratings’ stand.

In the statement on its revision, Fitch said it projected a general government surplus of around 3.5% of GDP in 2011, helped by big one-off factors, such as the transfer of private pension fund assets to the state, but it projects a general government deficit of 3.3% of GDP for 2012, noting that the government’s 2.5% deficit target for that year is "challenging" because of "the weak growth outlook, the uncertain costing and implementation of some measures and potential reform fatigue".