Hungary Convergence Plan Based On 3 pc Growth In 2017

Budapest, April 30 (MTI) – The government expects an economic growth of 3 percent and a budget deficit of 1.9 percent of GDP in 2017, Economy Minister Mihaly Varga said presenting Hungary’s convergence plan today.

According to the plan, Hungary’s state debt will be reduced to 75 percent of GDP by 2017, by which time unemployment will have been reduced to 8.2 percent, while domestic consumption is expected to have grown by an annual 2 percent.

Inflation is seen at 2.9 percent in 2015, and at 3 percent in 2016 and 2017.

Varga said that in the next few years the development of the Hungarian economy would be determined by “growth coupled with a declining debt”.

Varga told a news conference presenting Hungary’s convergence plan sent to Brussels that the budget would show a deficit of 2.9 percent of GDP this year, followed by 2.8 percent in 2015, 2.5 percent in 2016 and 1.9 percent in 2017.

Peter Beno Banai, the ministry’s state secretary, said that in the basis of data for the recent period, the convergence plan assumed a forint-euro exchange rate of 307.9.

Photo: MTI

Source: http://mtva.hu/hu/hungary-matters