Hungary’s unemployment rate is likely to rise further in the coming months, peaking around 11pc in the middle of the year, analysts told MTI on Friday after the Central Statistics Office (KSH) published fresh data.
Hungary’s average unemployment rate was 10.8pc in November-January, rising from 10.5pc in October-December, KSH said in the morning.
Raiffeisenbank’s Zoltan Torok said the November-January figure was worse than expected, probably because some public work programmes were wound up, as well as because of falling domestic demand. The rate is likely to peak around 11pc, but a turnaround will not be seen until the second half of the year, he added. Mr Torok saw the rate falling to around 10pc by the end of 2010.
Gyozo Eppich of OTP Bank put the average full-year unemployment rate at 11pc in 2010. A slow and gradual improvement could start in the second half of the year as export-oriented segments of the economy see a pick-up, he added.