According to the plan, Hungary’s state debt will be reduced to 75% of GDP by 2017, by which time unemployment will have been reduced to 8.2%, while domestic consumption is expected to have grown by an annual 2%. Inflation is seen at 2.9% in 2015, and at 3% in 2016 and 2017.

Varga said that in the next few years the development of the Hungarian economy would be determined by “growth coupled with a declining debt”. Varga told a news conference presenting Hungary’s convergence plan sent to Brussels that the budget would show a deficit of 2.9% of GDP this year, followed by 2.8% in 2015, 2.5% in 2016 and 1.9% in 2017.

Péter Benő Banai, the ministry’s state secretary, said that in the basis of data for the recent period, the convergence plan assumed a forint-euro exchange rate of 307.9.

Source www.hungarymatters.hu

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