Hungary’s GDP to contract 4-5% in 2009

Economic think tank Kopint-Tárki projects a 3% drop in euro zone exports this year, including a 3.0-3.5% decline in exports to Germany.

The think tank Kopint-Tárki
expects Hungary’s GDP to contract by 4-5% in 2009, compared to its
earlier forecast GDP contraction of 1.3% in December and 3.3% in
February, Kopint-Tárki CEO Éva Palócz said.

At the same time the research institute
raised its annual average inflation forecast to 3.7% from 3.2%.
Kopint-Tárki expects household consumption to drop 5% and
investments to contract 5-6% in 2009. Kopint-Tárki projects an
average euro-forint rate of 300 and an average oil price of $50 per
barrel in 2009.