Real domestic demand could grow at a slower pace, with 1.1% growth expected in 2015, down from a 2.5% growth forecast in October.

Export growth is projected at 6.2% compared with 5.3%. Real private consumption could grow 2.6%, faster than the previous forecast of 1.5%, the report said.

Average inflation in 2015 is now seen flat-lining, compared with 2.3% predicted earlier.

The budget deficit is projected at 2.7% in 2015, somewhat lower than the 2.8% forecast earlier, while public debt will be 75.5% of GDP, down from 79.2% forecast in the previous report.

The Hungarian central bank should continue its monetary easing in light of the economy’s low inflationary pressure, Jörg Decressin, Deputy Director of IMF’s European Department, told a press conference at the National Bank of Hungary.

Decreasing welcomed the NBH’s efforts against a decline in consumer prices, adding that once a deflationary period has started, it was very difficult put an end to it.

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