Reform Programmes in Hungary: Lisbon Matters? However, the NRP also considers the role of domestic use important for GDP growth. Consumption is also expected to grow dynamically, but at a slower pace (3-3.5% per year) than GDP; this means a positive change on the demand side structure of Hungarian GDP. Private consumption is expected to grow yearly by between 3% and 3.5%, while public consumption is estimated to stagnate throughout the period until 2008. Inflation is expected to decelerate gradually, and to be around 2% to 3% in 2008. Table 1. GDP components in Hungary(change compared to previous year, in%) 2005 2006 2007 Household consumption app. 3 app. 3.5 3-3.5 Public consumption-1-0-1-0 app. 0 Investments 6-8 6-8 6-8 Domestic use 2-3 app. 4 4-4.5 Export(goods and services) 9-11 10-12 9-11 Import(goods and services) 7-9 10-12 9-11 GDP 3.5-4 app. 4 4-4.5 Source: National Reform Programme for Growth and Employment(2005), p. 9. 2008 3-3.5 0-1 6-8 4-4.5 8-10 8-10 4-4.5 The estimated yearly growth rate of investments is between 6% and 8% An important underlying factor of this dynamism is the continuously increasing presence of foreign capital; the attractiveness of the country for foreign investors has to be further increased. Firms with foreign capital play a very important role in the export performance of Hungary, as well. Dynamic and sustainable growth is expected to have positive effects on employment. Until 2008, the NRP estimates a slow increase in the number of employees(see the data in Table 2). The unemployment rate is expected to decline again, and while the decrease is expected to be relatively small, it is calculated for slightly increasing activity rates, thus the real improvement can be better, if the figures come true. 121