Bloomberg News

Forint Weakens as Hungary’s Industry Output Points to Recession

August 07, 2012

Hungary’s forint weakened the first time in three days as the nation’s industrial output plunged in June, raising the chances of a second recession in four years.

The currency depreciated 0.6 percent to 277.21 per euro by 5:01 p.m. in Budapest.

Industrial production dropped 2.2 percent in June from May, the statistics office said in a preliminary report today. Output rose a workday-adjusted 0.6 percent in June compared with the same month last year, missing economist estimates in a Bloomberg News survey for a 2.2 percent expansion.

The International Monetary Fund last month urged Hungary to step up efforts to boost growth and make budget financing sustainable as part of a week of “constructive” loan talks that the Cabinet said will resume in September. The economy contracted in the first quarter. Second-quarter gross domestic product data will be published on Aug. 14.

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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