Hungary will probably postpone euro adoption from 2008 to 2010 because of high inflation and budget deficits
Published:
26 February 2004 y., Thursday
Hungary will probably postpone euro adoption from 2008 to 2010 because of high inflation and budget deficits, Finance Minister Tibor Draskovics said. The National Bank of Hungary (MNB) has argued for faster adoption, saying it will boost growth.
Draskovics detailed some proposed cuts in state expenditure. Plans include reducing the number of higher civil servants, such as government advisors and state secretaries; the number of state-run foundations; and support for ethnic Hungarians abroad.
January inflation was higher than the Finance Ministry expected, at 6.6% yr/yr and 2.1% month-on-month. It expects annual inflation in 2004 to be near the higher end of its 6%–6.5% target band.
The February budget deficit is anticipated to be about Ft 180 billion (Ђ684 million), boosted by interest payments, Finance Ministry sources said. The estimated February gap would push the two-month figure to Ft 399 billion, or 43% of the full-year target.
Industrial output grew 6.4% in 2003, after a 2.8% increase in 2002, the Central Statistics Office (KSH) said. In December output fell 0.8% month-on-month.
Real wages rose by 9.2% in 2003, as the result of a 14.3% rise in average net wages and twelve-month consumer price inflation of 4.7%, the KSH announced.
The government wants to raise R&D spending to 1.8%–1.9% of GDP by 2006, and to 3% by 2010, Prime Minister Pйter Medgyessy said. Last year the figure was barely above 1%.
The number of operating businesses in Hungary rose 2.6%, to a total of 969,559 in 2003, including not-for-profit and budget-funded businesses, the KSH said.
Šaltinis:
bbj.hu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
European conference promotes regional solutions to global challenges.
more »
Iceland‘s low-fare airline Iceland Express will launch regular flights by the new-generation „Boeing 737-700“ planes to about 8 different destinations from Vinius International Airport.
more »
Over 3 million people around the world have lost their jobs due to the financial crisis and, according to the UN, economic recovery is unlikely to reach those that have suffered most - poor women and children.
more »
The European Commission has today decided not to raise any objections to the public financing of infrastructure developments at three Lithuanian airports – Vilnius, Kaunas and Palanga International Airports.
more »
The European Commission has published the results of a public consultation launched in June 2009 on whether and how deadlines should be set for the migration of existing national credit transfers and direct debits to the new Single Euro Payments Area (SEPA) payment instruments.
more »
A favourable climate for innovation in the EU can speed up the transition to an eco-efficient economy and increase Europe’s global competitiveness.
more »
The International Monetary Fund (IMF) and the Deutsche Bundesbank have signed an agreement to provide the Fund with up to the equivalent of €15 billion (about US$22 billion).
more »
Today the European Central Bank is publishing a report entitled “Euro Money Market Survey 2009”, which illustrates the main developments in the euro money market in the second quarter of 2009, in comparison with the second quarter of 2008.
more »
New EU laws proposed for closer oversight of financial services industry, sending a strong signal to this week's G20 summit.
more »
The European Commission has repeatedly underlined that the restructuring plan of new Opel Europe must guarantee that the company will be viable in the future.
more »