How is the Hungarian economy doing?
Orban: The economic background is pretty good. Inflation this year is 15%, and we would like to reduce it to an average of 11% next year — and by December reach 10%, which would be a historic threshold. Exports are up 26% and imports 19%, so the trade balance is improving. Growth is 4% this year and could be higher next year, even 5%, which we are using as a basis in planning next year’s budget. BW: You are due to unveil the budget, your government’s first, later this month. What is your deficit target? Orban: We are discussing a deficit target of 4%, compared with just under 5% this year. It would be a considerable decline. BW: What will be the thrust of the main budget measures? Orban: The major issue is to convince the Hungarian people that if we have 5% economic growth next year, then the increase in the real value of salaries cannot be higher than 3%. There is a legitimate demand to have a higher increase in real wages; but if I were weak enough to fulfill it, economic growth wou
