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Global Economic Outlook

Hungary Outlook Update: Bumpy Road Ahead

By Jelena Vukotic

  • A gradual recovery in domestic demand will partly offset easing exports in the coming quarters.
  • Despite increased market optimism, RGE remains cautious about the government’s mid-term fiscal consolidation drive.
  • Inflation above the 3.0% target, along with rising rates in the eurozone, limits the central bank’s room to cut rates in 2011.

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