## Hungary: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Hungary

_IMF Staff Country Reports, February 3, 2023_

## Source details

**Canonical URL:** [Hungary: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Hungary](https://www.imf.org/en/publications/cr/issues/2023/02/02/hungary-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-529090)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/02/02/hungary-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-529090/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/02/02/hungary-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-529090/index.json)
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## Bibliographic details
- Published: February 3, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400228865.002

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### Key findings and recent developments
- The economy was recovering from the coronavirus disease-crisis but a succession of shocks and loose fiscal policy intensified inflation and fueled a large external deficit.
- The central bank significantly tightened monetary policy in response to rising inflation.
- The government plans a large fiscal adjustment, but regulatory measures undermine the effectiveness of the tighter fiscal and monetary policy mix.
- Growth is expected to slow sharply while inflation remains still-elevated.
- Sizable risks can worsen the outlook; consistent overall policy tightening is needed to address imbalances amid large uncertainty.

### Economic outlook and scenarios
- Baseline: Growth slowdown accompanied by still-elevated inflation.
- Downside scenario: Shocks that significantly weaken growth and inflation may prompt a more gradual tightening.
- Upside/inflationary shock scenario: Shocks that intensify inflation would require a faster tightening.

### Policy recommendations
- Ensure consistent overall policy tightening to address macroeconomic imbalances.
- Avoid regulatory measures that weaken the transmission and effectiveness of monetary and fiscal tightening.
- Strengthen energy security to help meet climate objectives and reduce vulnerabilities to supply shocks.
- Strengthen governance to improve the business environment and the efficiency of spending.

### Risks and priorities
- Large external deficit driven by heightened inflation and shocks.
- High uncertainty—policy stance should remain responsive to incoming shocks and evolving inflation dynamics.
- Structural priorities include energy security enhancements and governance reforms to reduce vulnerabilities and improve economic efficiency.

*International Monetary Fund. Hungary: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Hungary*

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## Content in this bundle

- **1. Fiscal Indicators**
  - [1. Fiscal Indicators (Markdown version)](/-/media/files/publications/cr/2023/english/1hunea2023001.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Fiscal Indicators (PDF)](/-/media/files/publications/cr/2023/english/1hunea2023001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/02/02/hungary-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-529090_