The deficit is expected to decline further to 3.2 percent in
2009 and to 2.7 percent in 2010.
The government raised its projection for GDP growth in 2008 from
2.6 percent to 2.8 percent, at the same time bumping up its
projection for average annual inflation from 3.3 percent to 4.8
percent.
The updated programme shows Hungary’s economy expanding by 4
percent in 2009, as inflation slows to 3 percent. It sees the public
finance deficit narrowing to 3.2 percent of GDP in 2009 and to 2.7
percent in 2010, unchanged from the earlier report.
The government has lowered the projection for state debt from
70.1 percent to 65.4 percent of GDP for 2007, and from 71.3 percent
to 65.8 percent for 2008. The programme targets state debt of 61.8
percent of GDP in 2011, just over the Maastricht criterion of 60
percent.
