HUNGARY: 2012 GDP forecast lowered to 0.9%

10 November 2011 — Daniela GHETU
Hungary's government decided on November 9th to lower its initial economic growth forecast for 2012, of 1.5%, to 0.9%. According to Hungarian financial press, the downward adjustment means that previously announced fiscal adjustment measures will need an additional HUF 250 billion package in order to meet the deficit target. This would total an adjustment of about HUF 1,600 billion.

According to portfolio.hu, qoting data provided by the Minister of Economy, the current three fiscal adjustment packages for 2012 have the following structure:

hungary_tabel

A couple of days earlier, Reuters said the revision of Hungary's growth estimate has been placed on the agenda after the country's key export partners, e.g. Germany and France most recently, have implemented similar changes.

Read more about the 2012 economic outlook for Hungary here.

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