BUDAPEST: Hungary's budget deficit is projected to narrow to 3.5% of economic output in 2023 from a targeted 4.9% deficit next year, the Finance Ministry said in a statement on Wednesday.

The ministry said the deficit would narrow further in 2024 to 2.5% of GDP. The economy is expected to grow by 5.9% next year after 6.4% this year, and by 4.3% in 2023.

Average inflation is forecast at 4.8% next year, after 5.1% this year.