Hungary Q2 GDP growth well below forecast

BUDAPEST: Hungary's economy grew by 1.6-1.8 percent in the second quarter in annual terms, well below expectations, according to unconfirmed figures published by leading Hungarian news portal index.hu late on Monday.

Index cited an unidentified source. Government officials were not immediately available for comment.

The Central Statistics Office will publish second-quarter gross domestic product data (GDP) on Tuesday at 0700 GMT. The data rarely leak out in Hungary ahead of the scheduled publication time.

Market participants have said that weak GDP figures could hit Hungarian assets because low growth could force the government to top its austerity programme with painful new measures to meet budget targets and keep investors' confidence.

Analysts reduced their growth forecasts for Hungary in the past two weeks and said further downwards revisions were likely as global growth prospects may darken further.

Their median forecast sees the Hungarian economy growing by 2.9 percent this year and by 2.6 percent in 2012.

Copyright Reuters, 2010