Hungary: Staff Report for the 2005 Article IV Consultation
IMF Staff Country Reports, June 29, 2005
Source details
- Canonical URL
- Hungary: Staff Report for the 2005 Article IV Consultation
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Bibliographic details
- Published: June 29, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451818017.002
Key findings
- Hungary’s economy achieved valuable gains in 2004 with GDP growth recovering to 4 percent.
- Growth was supported by strong investment and robust export growth.
- Consumption slowed in response to rising unemployment, a moderation in wage growth and a tightening of the housing subsidy scheme.
- Despite favorable developments, risks associated with the twin deficits remained.
- Although some fiscal consolidation has taken place, the twice upward-revised fiscal deficit target was not met.
Risks and fiscal assessment
- Persistent risks: twin deficits (current account and fiscal) identified as ongoing vulnerabilities.
- Fiscal performance: partial consolidation noted, but the twice upward-revised fiscal deficit target was missed.
Macroeconomic indicators and topics covered
- GDP growth: 4 percent in 2004.
- Labor market: rising unemployment contributed to weaker consumption.
- Wages: moderation in wage growth noted as a factor reducing consumption.
- Housing policy: tightening of the housing subsidy scheme contributed to slower consumption.
- Subjects listed: Balance of payments, Current account deficits, External debt, Government debt management, Inflation, Prices, Public debt, Public financial management (PFM).
- Keywords provided: consumer confidence confidence index, CR, Current account deficits, deficit, GDP, Government debt management, Inflation, ISCR, revenue shortfall, staff appraisal, staff projection, staff statement, Standard and Poor's.