According to OECD experts, investment and consumption may be the engine of growth in the Hungarian economy.
“Hungary has also received two important recognitions of economic policy in recent days. Both mean that not only the economic policy of recent years has been successful, but also the policy of restarting. In addition, the analyzes came from abroad and can hardly be traced back to that they were ordered by the government from experts” internals.”
Specifically, the Organization for Economic Co-operation and Development (OECD) expects our economy to grow by 6.9% this year, which is 2% (!) Better than the previous analysis of the world’s most important economies, and experts from Euler Hermes and Allianz Research expect it to continue for two years. The delay caused by the pandemic could thus reach the level of prosperity in most developed countries by 2027 instead of the 2025 originally expected.
Let’s start with the latter, given that when Victor Urban announced in January 2020 that Western prosperity could be within range by 2030, many contested his optimistic forecast. However, the prime minister did nothing but math: the Hungarian economy has been expanding dramatically for more than half a decade now, and along that logic at the beginning of last year (before the pandemic) it looked like we were going to bring the developed West. in ten years. The target for which we changed the system in 1990. The prime minister’s promise was not at all rosy anyway: he was targeting 85 per cent of the EU average – roughly the average of Italy and Spain – compared to Hungary’s current level of development which is over about 70 per cent.
An economic analysis of what the Prime Minister discussed in a government briefing has now been carried out. The study by credit insurer Euler Hermes and Allianz Research, cited above, examined how the pandemic is affecting global inequality in well-being and, within that, when Hungary reaches the level of income in most developed countries.
The growth of the Hungarian economy may be driven by investment and consumption, which may be further supported by the continued decline in unemployment, the recovery with the help of a rapid vaccination program and early opening, OECD experts expect a budget deficit of 7.5 percent in 2021. It is expected that The gradual unification of fiscal policy is achieved by 2023. Another consequence of their forecast is that the general government deficit is expected to decrease by about 2% annually. The document also envisions a downward trajectory for public debt. …”
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