Hungary: 2013 Article IV Consultation and Third Post Program Monitoring Discussions—Staff Report; Informational Annex; Public Information Notice; and Statement by the Executive Director
March 29, 2013
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This paper presents 2013 Article IV Consultation and Third Post Program Monitoring discussions on Hungry. While the output gap remains sizable, inflation expectations are not well anchored, and after seven consecutive policy rate cuts a pause seems prudent. Further monetary policy easing can be supported by stronger macroeconomic policies. Some efforts have been made to improve labor participation, but potential growth remains far too low for a country that should converge faster to EU-average incomes. The IMF report suggests that maintaining market confidence and reviving growth are the most pressing priorities for which decisive action to improve policies is needed.
Subject: Banking, Credit, Expenditure, Financial institutions, Loans, Money, Public debt, Revenue administration
Keywords: Central and Eastern Europe, CR, Credit, economy, Europe, executive board discussion, FX financing need, Global, growth potential, IMF staff estimate, ISCR, largely not observed, liability positions vis-à-vis nonresident, Loans
Pages:
63
Volume:
2013
DOI:
Issue:
085
Series:
Country Report No. 2013/085
Stock No:
1HUNEA2013001
ISBN:
9781484398388
ISSN:
1934-7685
