Hungarian Economy Grows 3.6%

Figure is lower than second quarter.

The Hungarian economy grew by 3.6% in the third quarter of 2006 on a 12-month comparison, the central statistics bureau KSH reported on Nov. 14 based on preliminary data. Gross domestic product (GDP) grew by 1% compared to the second quarter of the year.

Hungary's economy grew by 3.8% in the second quarter and by 4.1% from January to September of this year.

The economy registered GDP growth of 4.2% in 2005.

After a forecast growth of 4.1% for this year, the government expects GDP to grow by 2.2% in 2007 and 2.6 % in 2008, before recovering to 4.1% growth in 2009.

The slide over the next two years is expected to reflect tough austerity measures designed to rein in the country's deficit, the highest in the EU at a forecast 10.1% of GDP this year.
Socialist Prime Minister Ferenc Gyurcsany has said he wants to reduce the deficit to 3.2% of GDP by 2009 and prepare the country for the adoption of the euro between 2011 and 2013. The deficit ceiling in the eurozone is 3% of GDP.

Copyright Agence France-Presse, 2006

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