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The budget plan seems credible, according to investment department of London-based Goldman Sachs global finance service group. Expectations for 2008 include 2.8% GDP growth and 4.5% inflation.
Targeted public deficit will be 4.1% of GDP, said finance minister János Veres on Wednesday. Goldman Sachs’s analysis shows that actual deficit will probably be less than targeted. Deficit forecasted for 2007 by Goldman Sachs is around 6%, although growth may be more disappointing. Hungary is steadily proceeding towards budget consolidation, said Standard & Poor’s this week, and renewed Hungary’s debt risk qualifications (BBB+/A-2) with stable prospect. (Gazdasági Rádió)