Retail turnover may expand by two percent this year

According to a forecast by GKI, the Hungarian economy is about to leave the crisis behind. Unfortunately, in order to formally meet the 2010-2011 budget deficit target Hungarian economic policy started risky processes. In the short term this policy leads to exchange rate fluctuation and increased interest rates, putting a greater burden on people, enterprises and the state. The tax cuts for 2010-2011 cannot be financed the same way as now after 2012, which will lead to Hungary’s financial reputation worsening abroad. After last year’s 4.8 percent, the rate of inflation will be around 3.8 percent in 2011, with the Euro’s exchange rate at HUF 276. The relatively weak Forint will foster economic growth at the expense of import’s competitiveness. Industry and building/construction will be the driving forces of the economy and retail turnover will expand by two percent.