Economic growth at its lowest

According to a forecast prepared by GKI Gazdaságkutató Zrt. with Erste Bank, economic growth will be slower this year than expected previously, while the rise of gross wages and the rate of inflation will be faster. The two latter factors will result in more revenues for the government, leading to a decrease in budget deficit. The rate of growth has dropped to 1.4 per cent in the second quarter of the year. Export shows growth of 16 per cent in the first half of the year, while domestic sales increased by less than 1 per cent. The average rate of inflation for 2007 is expected to be 7.5 per cent, with only 5.5 per cent at the end of the year. The average HUF/EUR exchange rate is expected to remain around 250 during the year.