According to forecasts from the GKI Economic Research Co. prepared in co-operation with Erste Bank, following a slight GDP growth of 1pct in 2010, the Hungarian economy will expand by about 2.5pct in 2011 - better than the EU average, but slower than in many neighboring countries. The restructuring of taxes in 2011 brings the general government deficit under 3pct. However, fiscal sustainability is not ensured and the measures announced are unfavorable to economic growth, GKI added.
At its meeting on November 29, 2010, the Monetary Council reviewed the latest economic and financial developments and voted to raise the central-bank base rate by 25 basis points from 5.25pct to 5.5pct, with effect from November 30, 2010. The Monetary Council has decided to raise the base rate because inflation has remained persistently above the 3pct target, as well as the upside risks of inflation. It may be necessary to increase the base rate further in the coming months in order to meet the inflation target.
The European Commission has projected Hungary's economy to expand by 2.8pct in 2011 in its fresh biannual forecast published on November 29, unchanged from its projection in the spring. The Commission forecasts that Hungary will meet its 3.8pct fiscal deficit target for 2010 but will overshoot targets for 2011 and 2012. The forecast is slightly below the government's projection of 3pct GDP growth for 2011. The Commission raised its projection for GDP growth in 2010 to 1.1pct in the autumn forecast from stagnation in the spring.
Three electronics companies, together with a project-management company, inaugurated a HUF 2.36 billion Electronics Technology Test Center (El-Tech Center) in Budapest on Thursday. The El-Tech Center is equipped to design, manufacture and test hi-tech electronic devices, such as components for satellites, aircraft or instruments used in nanotechnologies. The founder companies include the satellite technology company BHE Bonn Hungary, security systems maker Carinex, Technoorg Linda (which specializes in ion beam technology for electron microscopy) and Budaorsi ISC, a business development company. The project was granted a HUF 476 million grant from the EU Regional Development Fund.
ITD Hungary is inviting investors to bid for a share in a strategic logistics facility in one of Hungary's main business hubs. On behalf of the Local Government of Győr-Moson-Sopron County, interested parties are invited to submit an offer for the purchase of assets to be sold by way of public tender.For details click here.
Manhattan Associates, a global supply-chain management company has commissioned a Hungarian representative - MG Supply Chain Zrt -in the CEE region. MG will conduct Manhattan's regional transactions, which had been managed by Indian and UK-based centers. The Hungarian geopartner's business profile is akin to that of Manhattan, includes purchase and sales management within the supply chains of corporate clients. Due to the new partnership, MG Supply Chain Zrt is expecting its annual income to reach millions of euros within a few years.
FGSZ Foldgazszallito, the gas-delivery unit of Hungarian oil company MOL announced plans to further develop gas inter-connector capacities between Hungary and its neighbors over the next years. The total value of the investment is set at HUF 250 billion, and will entail an extra cost of HUF 3 per cubic meter for end-users. MOL has inaugurated a new 1.5 bn cubic meter capacity inter-connector between Hungary and Romania; a similar 6.5 bn cubic meter connection to Croatia is to go online by the end of 2010. Furthermore, FGSZ is planning to increase capacity at gas inter-connectors with Austria,Slovakia and Slovenia by a total of 9-10 bn cubic meters.
The volume of retail sales in September 2010 and in the whole of the third quarter, based on calendar-adjusted data, somewhat broke the deadlock following a multi-year decrease. In the first nine months of this year, the decrease slowed to 2.9pct year-on-year. According to seasonally and calendar-adjusted data, the volume of retail sales slightly grew month-on-month in September.
The government is to announce structural reforms in February that will affect all areas of budget revenue and spending (though mainly spending), National Economy Minister Gyorgy Matolcsy said in an interview on public television late on November 24. Mr Matolcsy cited public transportation, the labor market fund and the health-care system as examples of areas that could be affected.The reforms will generate HUF 600-800 billion in savings.
Reuters Hungary govt won't dump pension fund stocks on mkt"Hungary will not immediately sell the stocks from the portfolios of the people who return to a state-run pension regime from the semi-private system, a top government official said on Monday." Click here to read Realdeal EU farm subsidies said key point of Hungarian EU presidency"The Hungarian EU Presidency next year will treat the future of the Common Agriculture Policy (CAP) as an key part of its agenda, Rural Development Minister Sandor Fazekas said in Brussels on Tuesday, after meeting EU farm ministers." Click here to read
Tax Changes from 2011Read further information here
A History of Architecture in the Carpathian Basin (1000 A.D.-1920)"Quietly evolving behind the blanket of the language barrier, the rich cultural traditions of Hungary have been long inaccessible to the world community. This book offers an exploration into the Eastern European architectural tradition in relation to the design elements and aesthetic principles of Western European architecture." Click here to read