Unlike during the global economic crisis of 2008, Hungary needed no assistance from the International Monetary Fund, Varga said.Continue reading
The OECD projects Hungary’s economic growth slowing to 5 percent in 2022 from 6.9 pc this year.
Also, inflation would remain high, “reflecting supply-side constraints and a tight labour market,” it said in its latest Economic Outlook published on Wednesday. The OECD forecast 5 percent inflation in 2021, rising to 6 percent in 2022.
The OECD reckoned fiscal policy would “remain expansionary” in 2022, before “gradually consolidating” in 2023.
The budget deficit is likely to be 7.5 percent of GDP in 2021 and 5.8 percent in 2022, the report said.
The OECD said structural reforms should focus on raising potential growth, and that labour taxes should be further lowered to help address labour shortages.
In the featured photo illustration (left to right): OECD Secretary-General Mathias Cormann and finance minister Mihály Varga. Photo by Zoltán Máthé/MTI