After a deep recession this year, Hungary’s economy may slowly recover in 2010, an OECD analysis said on Wednesday.
OECD expects Hungary’s GDP to contract by 6.1 percent in 2009, to be followed by a 2.2 percent recession next year.
Exports are predicted to fall by 17.3 percent this year, with a more moderate decline of 3 percent expected in 2010.
It predicts a sharp 21.6 percent decrease in imports in 2009, to be followed by a 3.1 percent drop next year.
Hungary will probably face two-digit unemployment in both years: 10.7 percent in 2009 and 11.7 percent in 2010.
The report said the rate of inflation was expected to be 4.5 percent this year and 4.1 percent in 2010.
The budget deficit is likely to amount to 4.2 percent of GDP in both years, it added.
“Implementing sustainable fiscal consolidation is the key for boosting investor confidence and providing room for monetary policy to ease,” said the report.
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