Current Account To Improve Despite Export Growth Slowdown

After narrowing substantially to 4.9% of GDP in 2007, we forecast Hungary's current account to improve further over the long term. This despite our forecast for a slowdown in export growth from 16.2% in 2007 to 5.5% by 2012, and a steady widening of the net income deficit in nominal terms. Offsetting these factors will be concomitant declines in import growth which will keep the net export surplus rising, alongside a reduction in the income deficit in percentage of GDP terms.

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