BUDAPEST, Dec 1 (Reuters) - Hungary's economy will post annual growth again from mid-2010 helped by tax cuts and a revival of export markets but the crisis is not over until unemployment starts to ease, Prime Minister Gordon Bajnai said.
One day after parliament approved the 2010 budget, a key condition of the country's financing deal with international lenders, Bajnai told Reuters the deficit target of 3.8 percent of gross domestic product (GDP) was ambitious but achievable, barring major unexpected negative changes in global conditions.
"I consider this to be a stamp, a sort of guarantee on our programme ... and a clear sign of our commitment to keep Hungary on that newly found route of fiscal prudence," Bajnai said in an interview.
He said the budget had reserves worth around 0.8 percent of GDP which should be sufficient to offset any foreseeable risks of overshooting in the deficit.
The central bank and some analysts have warned the deficit could exceed the target while the main opposition party Fidesz said the government has skeletons in the closet which could boost the gap above 7 percent after elections due in April or May next year.
"I would expect that Hungary will be able to experience positive growth figures in the economy from the middle of next year...(in) year-on-year (terms)," Bajnai said.
"(Quarter on quarter) growth may kick in much earlier." (Reporting by Krisztina Than and Marton Dunai; editing by Stephen Nisbet) ((krisztina.than@reuters.com; tel +36 1 327 47 45; rme krisztina.than@reuters.com.net))