Hungarian economy to recover in 2008

If the global financial market stabilizes, the forint interest rates may decrease, states the report. The industry continues to be export oriented, although the main focus lies on the production of electric machinery, electronics and motor vehicles. Domestic sales of the manufacturing industry decreased. A significant increase is expected from the expansion of EU supported investments in infrastructure in H2 2008. Significant change is also expected from the expansion of EU supported investments in the infrastructure in the second half of the year. In 2008 the growth rate of the economy will be lower than in any other new EU member state. The economy as a whole will grow by 2.5-3% (PY: 1.3%), reports GKI. While in the first quarter the growth rate was close to the last year’s 1.3%, the growth rate in the fourth quarter will be close to the 3.5% expected for 2009.