Hungary economy to grow 2.5-3pc in 2011, says deputy FinMin

Vienna, September 17 (MTI) – Hungary’s economy is expected to grow by 2.5-3.0 percent next year, after growth below 1 percent this year, Andras Karman, the deputy Finance Minister said on the sidelines of a conference in Vienna on Friday.

Karman told Dow Jones news agency that growth will continue next year next to a deficit-reduction programme, Karman said at the conference on Eastern Europe organised by the Austrian Finance Ministry.

    Thomas Mirow, president of the European Bank for Reconstruction and Development, said at the same conference that Hungary needs to be closely watched since the country’s medium term economic policy is still unclear, the Associated Press reported.

    ”What would help Hungary most is to rebuild trust with international investors, that would also sustain the value of the forint,” Mirow told Reuters. “We need to outphase foreign lending and replace it with local currency lending,” he added.

    Gyorgy Matolcsy, the economy minister, told a radio programme earlier today that the cental bank’s monetary policy needed to change for Hungary’s economy to grow by 2.5-3 percent in 2011. He added that the central bank should contribute to economic stimulus plans not by cutting the base rate but by launching a bond purchase scheme, “as they do in leading countries of the world”.








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