According to the forecast of GKI Economic Research Co. prepared in co-operation with Erste Bank, recessionary trends, which started in Autumn 2008, will continue, moreover, deepen, although the great global pessimism and market panic of the past weeks have eased.
According to the forecast of GKI Economic Research Co. prepared in co-operation with Erste Bank, recessionary trends, which started in Autumn 2008, will continue, moreover, deepen, although the great global pessimism and market panic of the past weeks have eased. The Hungarian economy is influenced by both falling external demand-currently the contraction of Germany's GDP is expected to reach 6 per cent-and by the significant decline of domestic demand. Cuts in general government expenditures and the restructuring of taxes decided by the new government in order to achieve the new deficit objectives, too, have a recessionary impact. Hungary's GDP is expected to drop by about 5.5 per cent but at the same time the current account deficit is set to decrease markedly and internal disequilibria are likely to be in line with international requirements.
You can download the analysis from here.
