Hungary: Control financial vulnerabilities

Against the background of global financial turbulence, economic activity is set to decline in 2009, before picking up with the recovery in world trade and with higher confidence following international financing support. Inflation should decelerate towards the 3% target as wage growth remains moderate. The current account deficit should narrow.
Controlling financial vulnerabilities is a key policy priority. The most urgent challenge is to move forward with announced measures to improve banks’ risk management (including stress testing), particularly regarding households’ large foreign currency exposure. Efforts to restore the sustainability of public finances should continue and past profligacy in election years avoided, so as to provide room for reducing tax and social security wedges when the financial crisis subsides.


Economic data

GDP growth: +0.2% Q4 2019
Consumer price inflation: 2.3% January 2020
Trade (G20): -0.1% exp, -1.3% imp, Q4 2019
Unemployment: 5.1% January 2020
Last update: 11 March 2020

OECD Observer Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Digital Editions

Don't miss

Most Popular Articles

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2020