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UPDATE 1-Hungary sees no drastic moves in economic policy
April 30, 2014 / 9:51 AM / 3 years ago

UPDATE 1-Hungary sees no drastic moves in economic policy

(Releads, adds quote, context, details on deficit path)
    BUDAPEST, April 30 (Reuters) - Hungary sent an economic
projection to the European Commission on Wednesday that it says
won't require dramatic policy measures as the new government of
Prime Minister Viktor Orban, who won elections by a landslide
this month, takes office.
    Orban unnerved markets in his previous four-year term with
sudden changes in economic policy that were often called
unorthodox, such as one of the highest bank levies in Europe.
    However, he is expected to tread more carefully in the
coming period.
    "We designed a calm, consolidated, balanced economic policy
path which does not reckon with serious, drastic changes that
would upend this process," Economy Minister Mihaly Varga told a
press conference detailing the economic report.
    The country will post 2.3 percent growth this year, higher
than the previous forecast of 2 percent, while inflation will
stay within the central bank's 3 percent mid-term target on the
long term, the Economy Ministry said in a statement.
    The growth projection contained in the 2014 budget was for 2
percent.
    Varga said the government does not expect austerity measures
will be needed to keep the deficit low, while the current
account will show a sustained surplus and government debt will
decline to 75.2 percent of GDP by 2017.
    The ministry's statement, which accompanied a convergence
report sent to the European Commission, contained the following
main figures:
    
  GOVERNMENT FORECASTS IN CONVERGENCE REPORT (PCT, YR/YR) 
                           2014    2015    2016   2017
 GDP growth                2.3     2.5     2.1    3.1
 Exports                   5.8     6.8     6.7    6.6
 Imports                   6.2     6.5     5.8    7.2
 Inflation                 0.8     2.9     3.0    3.0
 Budget gap (PCT / GDP)    2.9     2.8     2.5    1.9
 
 (Reporting by Marton Dunai; Editing by Toby Chopra)

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