THE latest trade figures, which show exports in May up 12% on 2004 figures, indicate a revival in Hungarian economic growth, economists said this week.

Figures released on Tuesday revealed a five-month trade deficit of just over €1 billion this year, almost half the figure piled up one year ago.

"The trade deficit looks pretty nice, although it is a bit tricky, as last year there was a surge in imports prior to Hungary joining the EU, so that distorts comparisons. [Nonetheless,] there is no doubt the economy has revived, with industrial production, new orders and even agriculture all looking good," said Zoltan Torok, economist with Raiffeisen Securities.

The revival meant economic growth, which had slipped to 2.9% in the first quarter, would be "well above 3% in the second," Torok said. Exports to new-EU member states and non-EU Europe are booming, with 40% growth, rather than sales to [traditional markets] in the old-EU member states. Meanwhile the Hungarian forint remained strong this week, trading at Ft244.70 to the euro on Tuesday lunchtime.