Hungary deficit under 3pc in 2012, 2013 - EC forecast

The European Commission projects Hungary's government deficit will be under the 3 percent of GDP threshold in 2012 and 2013 in its European Economic Forecast for spring published on Friday. The forecast puts the deficit at 2.5 percent of GDP in 2012 and 2.9 percent in 2013. The projection for 2012 is down from 2.8 percent forecast last autumn. Hungary's economy is set to contract by 0.3 percent in 2012 but grow by 1 percent next year, according to the fresh forecast. The deficit projections in Hungary's updated Convergence Programme submitted to Brussels are 2.5 percent for 2012 and 2.2 percent for 2013.