"Hungary will be the only economy that falls into recession of the Central and Eastern European (CEE) countries next year, Austrian economic research group WIIW said in a report.The global financial crisis will have an impact on countries in the region as their economies slow down to an average annual growth of just 2.7%, compared with the initial forecast of 5%.
WIIW forecasts a 1% decline in Hungary’s GDP growth for 2009, with the jobless rate climbing to 8.8%. Economic activity could rebound to over 1% one year after, when unemployment could fall back to 8.2%, the Vienna-based think-tank projected.
The risk factors for the entire region include the uncertain economic growth prospects of key EU economies and the state of the US economy going into 2009, but contracting foreign direct investment in the CEE region could also curb growth, the report added."
Source: Hungary Around the Clock.
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01.12.2008