2010.06.20. 12:48
Economic think-tank forecasts fiscal deficit of 4 pc/GDP in 2010
<p>Budapest, June 15 (MTI) - Economic think-tank GKI said on Tuesday that Hungary s budget deficit will hit 4 percent of gross domestic product in 2010.</p>
The government s so-called action plan envisages savings and additional revenue amounting to 350 billion forints this year in order to meet the deficit target of 3.8 percent of GDP.
GKI said, however, that the measures are unlikely to meet the targets, and revenue from the special bank tax will not be as high as the government hopes.
The economy will grow 1 percent this year, the think-tank said. In March GKI expected growth to flat-line in 2010.
It raised its 2010 annual average inflation forecast to 4.8 percent from 4.3 percent in March.
GKI expects the forint to average 270 to the euro in the second half of the year and the central bank s base rate to fall to 5.00 percent from 5.25 percent.
