Consumption drops by 3 per cent next year

Prospects for the next year are gloomy, and recession is looming, though less deep than two years ago. This is only in part a consequence of the worsening global economic environment.

The state of the Hungarian economy in 2011 is in many respects worse than last year, and where it seems to be better, it is only imaginary (except the improvement of the external balance). Economic growth is only accelerating due to the favourable agricultural harvest caused by good weather. There is no substantial improvement in the labour market. Prospects for the next year are gloomy, and recession is looming, though less deep than two years ago. This is only in part a consequence of the worsening global economic environment. The austerity measures of Hungarian economic policy prevented an increase in domestic demand and the development of the economy more than previously envisaged.

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