EBRD improves growth outlook for Hungary.

By bne IntelliNews July 23, 2010
The EBRD raised its forecast for the economic growth in Hungary by 0.2pps to 1.2% y/y for 2010, according to the latest outlook report of the bank. Similarly, the projected GDP growth for 2011 was improved by the same margin to 2.3% y/y. EBRD pointed out that statistics data showed favourable signs for a recovery of industrial production and exports up till May. On the negative side, domestic demand had remained weak due to low demand for credit and a persistent increase in the unemployment rate. Overall, industrial activity was expected to slow down in H2, possibly due to a moderation of the low base effect from the previous year but nevertheless, the EBRD expected slight economic growth for 2010. It, however, warned on risks for the recovery of domestic demand in the planned introduction of a temporary financial sector tax since it could prevent a picking up of credit activity. In addition, the bank underlined the uncertainty, surrounding fiscal policy after the failure of the IMF talks as another negative factor for the markets.

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335