Export and the industry are already expanding

According to a forecast by GKI Gazdaságkutató Zrt. and Erste Bank, industrial and foreign trade data indicated a moderate economic growth in early 2010. In several sectors – building and construction, retail, employment – the negative trend continued. In January-February, industrial export expanded by 15 percent, but domestic sales contracted by 11 percent. In the same period, building and construction performed 12 percent worse than a year earlier. Decision making by state authorities temporarily slowed down with the change of government.

Domestic sales by enterprises will not start to grow until the end of the year. In 2010, gross industrial production will improve by 3-4 percent. Agricultural production will be similar to last year’s. The level of investment will only improve by 3 percent. Household consumption will continue the negative trend with minus 1.5 percent. Gross wages will increase by 2 percent. The new government’s budget deficit target is expected to be around 5 percent.