“After growing by an estimated 3.3% in 2014 Hungary’s economic growth is forecast to slow down in 2015 and further still in 2016,” the report said. “While the 2014 target for the headline deficit was likely overachieved, the government deficit is projected to increase slightly in 2015,” it added.

“Preliminary data suggest that the government’s deficit in 2014 could reach 2.6% of GDP,” or 0.3 percentage points below the official target. The commission said that the jobless rate had fallen further while inflation was lower than expected.

“The number of unsubsidised job vacancies increased in 2014, as did the activity rate and the employment rate. With economic growth, job creation in the private sector continued, but employment growth was also supported by extensive public works.”

The report said that in the third quarter of 2014 unemployment fell to a low of 7.4% and it is forecast to be slightly above 7.5% for the year as a whole. Harmonised consumer price inflation was zero per cent, it said.

“Consumer prices in 2015 are projected to grow by 0.8%, revised down from 2.5% in the autumn forecast.

Source www.hungarymatters.hu

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