The forint strengthened considerably after the news that the obstacles to the IMF negotiations might be eliminated soon. GKI forecasts that the implementation of the Szell Kalman Plan 2.0 may be sufficient to terminate the excessive deficit procedure next year.
The forint strengthened considerably last week after the news that the obstacles to the IMF negotiations might be eliminated soon. GKI Economic Research Co. forecasts that the implementation of the Szell Kalman Plan 2.0 may be sufficient to terminate the excessive deficit procedure next year, and the threat of suspending Hungary’s access to cohesion funds might also disappear in June this year. However, no genuine changes necessary for a quick IMF agreement can be seen in the government's policy and economic policy, and even the fulfilment of the conditions for the negotiations cannot be taken for granted. Meanwhile, data of the first months of 2012 suggest an economic downturn.
You can download the forecast from here.
