Economy
Hungary gov't rejects report on lowering 2012 growth estimate
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Growth will not be smaller
Reuters contacted the government after local business daily Napi Gazdaság reported today that the growth target was lowered to 0.9% from 1.5% in the 2012 Budget at the Wednesday government meeting.
Another HUF 250 bn slippage?
The cabinet decided at yesterday’s government meeting to cut its 2012 GDP estimate to 0.9% from 1.5%, the paper learned, adding that this would require a HUF 250 bn adjustment on top of the measures included in the 2012 Budget.
The general government deficit target for next year is 2.5% of GDP, which should be achieved by a HUF 1,400 billion balance improvement. This should be topped up by the aforementioned HUF 250 bn fiscal adjustment, resulting in an unprecedented package.
It will be also highly important how fast growth the European Commission will project for Hungary in its autumn forecast to be published today.
It was leaked two days ago (Reuters learned from governement sources) that the official GDP prognosis will be revised downward. It was actually Reuters that Next year’s economic growth will have a major impact on the budget. According to some estimates, there will be a HUF 100-150 bn budget slippage due to the feebler growth.
Reuters contacted the government after local business daily Napi Gazdaság reported today that the growth target was lowered to 0.9% from 1.5% in the 2012 Budget at the Wednesday government meeting.
Another HUF 250 bn slippage?
The cabinet decided at yesterday’s government meeting to cut its 2012 GDP estimate to 0.9% from 1.5%, the paper learned, adding that this would require a HUF 250 bn adjustment on top of the measures included in the 2012 Budget.
The general government deficit target for next year is 2.5% of GDP, which should be achieved by a HUF 1,400 billion balance improvement. This should be topped up by the aforementioned HUF 250 bn fiscal adjustment, resulting in an unprecedented package.
It will be also highly important how fast growth the European Commission will project for Hungary in its autumn forecast to be published today.
It was leaked two days ago (Reuters learned from governement sources) that the official GDP prognosis will be revised downward. It was actually Reuters that Next year’s economic growth will have a major impact on the budget. According to some estimates, there will be a HUF 100-150 bn budget slippage due to the feebler growth.
