Hungary: Economic Policies for Sustainable Growth
Occasional Papers, February 12, 1998
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- Canonical URL
- Hungary: Economic Policies for Sustainable Growth
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Bibliographic details
- Published: February 12, 1998
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781557757098.084
Summary of main findings
- Economic developments in Hungary during 1995-97 illustrate one of the most remarkable cases of macroeconomic adjustment in Europe over the last decade.
- Several momentous steps in the integration of the Hungarian economy with the rest of Europe and the industrial countries community took place:
- In May 1996, Hungary acceded to the OECD.
- In July 1997, it was invited to join NATO.
- In July 1997, the European Commission recommended that EU start membership talks in near future.
- Reducing inflation, maintaining a sustainable external position, and allowing growth of the private sector will require the continuation of the prudent fiscal policies that have characterized 1995-97.
Major themes and analysis
- Macroeconomic adjustment:
- The period 1995-97 is characterized as a notable instance of macroeconomic adjustment in Europe.
- Integration with international institutions:
- Accession to OECD (May 1996).
- Invitation to join NATO (July 1997).
- European Commission recommendation toward EU membership talks (July 1997).
- Policy priorities:
- Continue prudent fiscal policies established in 1995-97 to:
- Reduce inflation.
- Maintain a sustainable external position.
- Allow private sector growth.
Subject coverage and keywords
- Subject: Balance of payments, Banking, Current account, Economic sectors, Expenditure, External debt, Inflation, Prices, Privatization
- Keywords: Baltics, Central and Eastern Europe, Current account, deficit, Eastern Europe, enterprise, functioning market economy, Global, Inflation, inflation reduction, medium-term growth prospect, national bank of Hungary, OP, Privatization, transition economy, Western Europe