Pénzügykutató Expects Hungary’s GDP Growth To Fall To 2.4% This Year
- 26 Mar 2015 8:00 AM
Pénzügykutató expects Hungary’s GDP growth rate to fall to 2.4% this year as investments slow, the economic research company said in a forecast. The projection is well under the government’s latest forecast for growth of 2.8% - 2.9%. Hungary’s GDP rose by 3.6% last year.
The firm said the budget deficit would remain under the 3%-of-GDP threshold, but achieving the 2.4% target could require cancelling budget reserves and new measures on the revenue side.
Public debt is set to edge down to 76.2% of GDP by year-end from 76.9% at the end of last year.
Average annual inflation is projected to reach -0.4% from -0.2% in 2014. The central bank could reduce the base rate as far as 1.60%, said Pénzügykutató researcher Éva Várhegyi.
The central bank decided to cut its key rate by 15bp to 1.95% on Tuesday in its first rate move since last summer.
Source www.hungarymatters.hu
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