DEFICIT SOARING

Tibor Draskovics: ’Hungarian economy goes in the right direction’.

There is a negative record again in economy as the current payment balance had a deficit of 1,o7 billion euros this April while the deficit of the first four months of 2004 was 2,826 billion euros according to the report of the Hungarian Central Bank. Tibor Draskovics, Minister of Finance still claims that Hungarian economy goes in the right direction.

Hungarian and foreign analysts agree that the economic processes are alarming and the expectations are also disquieting. Experts in London say there is a good chance that the deficit of this year will surpass that of last year. The increasing inflation rate can reduce the trust in Hungarian forint while the Ministry of Finance explains the situation by the growth of import.

Translated by Péter Szentmihályi Szabó