"Hungary “may be over the largest part" of the shocks induced by the global credit crisis, but the country is facing persistent problems “and recession can easily last for up to one or one and a half years," Prime Minister Ferenc Gyurcsány said on Wednesday.At the meeting of the National Development Council, where Gyurcsány was speaking, the parties discussed how to modify the National Development Plan so that it could offset the recession to a certain extent. The modifications are also necessary as neither fiscal policy, nor household consumption, nor the export sector can be a driving force in economic processes in 2009.
This is why the PM said “non of us is happy to see what surrounds us", adding that “the worst is not behind us yet."
The government has recently slashed its 2009 GDP forecast to a 1.0% contraction from a 1.2% growth. Some investment banks, however, see an even bigger downturn ahead."
Source: Portfolio Online Financial Journal
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20.11.2008