Problematic Hungarian growth

GKI has released its latest snapshot of the Hungarian economy. Only moderate changes are in store for the rest of 2011, says the market researcher.

The negative effects of the European debt crisis have eased, says the report, as a result of the latest Greek rescue package. However, Europe, including Hungary, is still in danger.

In Q1 2011 the Hungarian economy grew by 2.5%, but is not expected to be higher in the rest of 2011. Owing to the decline in European demand, Hungarian exports will grow less rapidly than before.

Due to relatively favourable weather conditions, agricultural production, will increase significantly. Its growth rate remains dynamic in 2011.