According to the regular annual IMF report that summarizes findings of the Article IV consultation, Hungary’s financial exposure has significantly diminished and the Hungarian economy has grown stronger.

The IMF expert study and the IMF Directorate both applaud the performance of the Hungarian economy, especially factors such as dynamic economic growth, the substantial drop in unemployment and the ongoing efforts aimed at reducing the external vulnerability of the economy.

The report points out that recent pro-growth economic policy, favourable external economic environment and the utilization of EU funds have all contributed to expansion. Hungary’s financial vulnerability, the exposure to external risks has also significantly diminished.  This was the result of steady current account surpluses, the massive decrease of external debt – especially the share of forex debt, and improving market confidence. The report also voices appreciation for the improvement of tax collection and economic transparency, highlighting the positive effect of on-line cash registers and the EKÁER (Electronic Trade and Transport Control System).

In the opinion of the IMF, in order to maintain these achievements efforts aimed at mitigating economic vulnerability must be continued and the Government must further improve conditions for business environment, competitiveness and private sector-driven economic growth. Further measures are also required to boost lending and comprehensive structural reforms must be continued to facilitate the full utilization of growth options.

The report on Hungary, which outlines the detailed conclusions and findings of IMF staff as well as an analysis of outlook and risks, can be found at this link.

(Ministry for National Economy)