Hungary s economy to start growing in Q3 this year - think tank

Budapest, March 20 (MTI) - Hungary s GDP will start growing again in the third quarter of 2013 as a result of rising agricultural output, economic research company Szazadveg Gazdasagkutato told MTI on Wednesday.

Szazadveg said that full-year GDP would stagnate, noting that both domestic and foreign demand will remain weak. The company predicted that Hungary s economy could grow up to 1.5 percent in 2014.

Previously, in December, Szazadveg lowered its 2013 GDP growth projection to 0.3 percent from 0.9 percent as a result of weakness in Hungary s external markets.

Szazadveg projected full-year inflation of 2.8 percent in 2013, down from 4.3 percent in the company s December forecast. The company said that slowing inflation would provide the National Bank of Hungary with the opportunity to continue reducing the base rate, which currently stands at 5.25 percent following seven consecutive 25-basis-point cuts.

Szazadveg predicted that Hungary would have a government deficit of 2.9 percent of GDP in 2013. The company said in December that the government could reach its deficit target of 2.7 percent of GDP this year if previously announced fiscal adjustments were implemented.