Bloomberg News

Hungary to Contract, Post Fastest Inflation in 2012, EU Says

February 24, 2012

Feb. 23 (Bloomberg) -- The European Commission said Hungary’s economy will probably shrink this year while inflation will be the fastest in the European Union

Gross domestic product will contract 0.1 percent, the European Commission forecast today in its Interim Forecast, downgrading a 0.5 percent growth estimate from its Autumn Forecast. The inflation rate will average 5.1 percent, the highest in the EU, the commission said, increasing its previous 4.5 percent estimate.

Hungary’s government predicts GDP will grow 0.5 percent this year. Economic performance will be somewhere between stagnation and 0.5 percent growth, Mihaly Varga, Prime Minister Viktor Orban’s chief of staff, said Feb. 19.

--Editors: Andrew Langley, Balazs Penz

To contact the reporter on this story: Zoltan Simon in Budapest at zsimon@bloomberg.net.

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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