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Index – Economy – Secretary-General of the Organization for Economic Cooperation and Development for the Index: External shocks hit Hungary

Index – Economy – Secretary-General of the Organization for Economic Cooperation and Development for the Index: External shocks hit Hungary

Oliver Lenzier

“Hungary has turned into a successful export-oriented economy, but at the same time there is still room for improvement,” the OECD Secretary-General told the index in a video interview, then went on to say that fiscal measures taken by the government have helped the economy during the macroeconomic situation. Difficult, but as a result the budget deficit increased, which must be strengthened.

This week, the Organization for Economic Co-operation and Development, known as OECD, reported on the Hungarian economy. Strikingly, it is 147 pages long a report It addresses in detail the current macroeconomic situation and also formulates a number of recommendations. Hungary joined the organization as a full member on 7 May 1996, which is highlighted in its current assessment as positive.

  • The performance of the Hungarian economy exceeds the pre-pandemic level by 5 percent
  • They expect the economy to be able to get back on the growth path, with a 2.4% expansion this year (the government, on the other hand, expects a 3-4% increase).
  • Unemployment is among the lowest in the European Union
  • The inflation rate may reach 3.9% this year and 3.4% in 2025, and the ratio of national debt to gross domestic product may reach about 75%.
  • According to them, tight monetary policy can only be eased gradually, primarily due to uncertainty in the forint exchange rate.

At the same time, the organization made criticisms and suggestions,

  • Perhaps the most interesting thing is that, according to them, due to the aging of the population and constant migration, changes must be made to pension expenditures and the system itself,
  • Productivity needs improvement
  • They see a big difference in digitalization between SMEs and large companies,
  • He stated that the disparity between the rich and the poor is great.
  • It was emphasized that fiscal policy must pay close attention to the budget,
  • Moreover, he mentioned that some companies dominate certain industries, so they are not pushed to compete.
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“As of this year, the Hungarian economy will return to a sustainable growth path, employment rates will be high and unemployment will remain low. We are members of an international organization that provides real assistance to the economic development of individual countries through its fact-based analyzes and recommendations that take into account the interests of member states.” That is why Hungary strives to continue strategic cooperation with the OECD” – this is how Finance Minister Mihály Varga assessed the report. Index then had the opportunity to conduct a video interview with Matthias Kormann,With the Secretary-General of the OECD, which you can see below And the:

(Cover photo: Mathias Cormann, Secretary-General of the Organization for Economic Co-operation and Development (OECD) at a press conference on the OECD Economic Report on May 8, 2023 in Berlin. Photo: Florian Gärtner/Photothek/Getty Images)