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Hungary: Study predicts major budgetary improvement

This year both domestic and foreign balances of the central budget will considerably improve, and Hungary will be out of the pit, economic research institute GKI Zrt and Erste Bank Zrt projected in a joint study.

Annual economic growth in 2008 is expected at about 3%, partly due to the good harvest. The forint’s exchange rate is exposed to whether the 2009 budget will be accepted or rejected.

Full-time employees had a monthly gross average income of Ft 195,700 in January - May, Ft 120,500 net. Gross average wages grew by 7.9% year-on-year (y/y), and net incomes by 7.2%. Real wages will prove to have grown 2% in the private sector and 0% in the public sector in 2008. In June, prices grew 0.1% month-on-month (m/m), and 6.7% y/y (annual inflation in May was 7%).

Food prices featured a definite diversity: meat prices, e.g., grew 3.3% m/m, while those of vegetables and fruit dropped 7.3%, but all in all, food prices dropped 0.4% m/m. Fuel prices grew 2%, and the annual average will be 6.5%. (Népszava)