Hungary state debt to fall to 78 pc of GDP in 2011 – econmin

Budapest, November 18 (MTI) – Hungary’s state debt is expected to fall to 78 percent of gross domestic product (GDP) next year from 79-80 percent this year, the Economy Ministry said on Thursday.

The ministry forecasts economic growth of 3 percent in 2011.

    The ministry sees household consumption growing by 3.9 percent in 2011 after declining by 3.1 percent in 2010.

    Tax revenues relative to GDP are set to fall to 36 percent in 2011 from 39.5 percent in 2009, according to the ministry’s analysis.

    Lasting fiscal consolidation will require the creation of one million jobs in ten years, raising the investment rate to around 25 percent, reducing state bureaucracy by at least 25 percent, keeping GDP growth over 3 percent and balancing social security funds, the ministry said.