Hungary’s economy reckoned to grow 2.8 pc in 2011 – think-tank

Budapest, June 16 (MTI) – Think-tank Szazadveg has lowered its 2011 economic growth forecast for Hungary to 2.8 percent from 3.1 percent, while it expects growth of 2.7 percent in 2012 compared to its earlier projection of 3.6 percent.  

The forecast is below the government’s projection of 3.1 percent for 2011 and 3.0 percent for 2012.


Household consumption is expected to grow by 2.1 percent this year and 3.1 percent in 2012, the think-tank said.


Consumer price inflation is set to decline to 4.4 percent in 2011 and 3.2 percent in 2012, it said, adding the central bank is likely to keep the base rate at 6 percent until the end of this year, before cutting it to 5.5 percent in 2012.


Hungary’s budget could post a surplus of 2 percent of gross domestic product this year due to the transfer of mandatory private pension funds to the state, Szazadveg said.