The alliance between the ruling Hungarian Socialist Party (MSZP) and the SZDSZ-Hungarian Liberal Party (SZDSZ) was renewed following the April 2006 parliamentary election. The government's support is currently weak, largely owing to the introduction of fiscal austerity measures. There is a risk that the prime minister, Ferenc Gyurcsany, could be ousted before the end of the forecast period, should the government's popularity remain low. The Economist Intelligence Unit expects the budget deficit to fall further in 2008-09, but to be above target. There will be some progress on structural expenditure reform, but resistance to it will result in a dilution of efforts to cut spending. Real GDP growth will recover to 3% in 2008 and pick up further in 2009 as the effects of austerity measures wane. Average annual inflation will decline to around 4.3% in 2008 and 2.8% in 2009 as the effects of changes in regulated prices and subsidies fall out of price calculations. The current-account deficit is forecast to increase steadily as a percentage of GDP in 2008-09.