## Hungary: 2024 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, August 2, 2024_

## Source details

**Canonical URL:** [Hungary: 2024 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2024/08/02/hungary-2024-article-iv-consultation-press-release-and-staff-report-553126)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/08/02/hungary-2024-article-iv-consultation-press-release-and-staff-report-553126/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/08/02/hungary-2024-article-iv-consultation-press-release-and-staff-report-553126/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/08/02/hungary-2024-article-iv-consultation-press-release-and-staff-report-553126/bundle-manifest.json)

## Bibliographic details
- Published: August 2, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400283703.002

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### Executive summary and context
- The 2024 Article IV Consultation discusses that Hungary is emerging from a period of shocks.
- Key shocks identified: the pandemic, Russia’s war in Ukraine, and crisis-related stimulus.
- These shocks widened fiscal and external imbalances and triggered double-digit inflation in 2022.
- Publication date: August 2, 2024.

### Macroeconomic outcomes and outlook
- Inflation:
  - Double-digit inflation occurred in 2022.
  - Thanks to an effective monetary policy response aided by falling commodity prices and a tighter fiscal stance in 2023, inflation came down significantly.
- Labor market and financial sector:
  - The labor market and financial sector remained resilient.
- External and fiscal imbalances:
  - The shocks widened fiscal and external imbalances; addressing these remains a priority.

### EU funds and governance issues
- Ongoing negotiations on the super milestones, including the Commission’s assessment of governance conditions, are delaying the disbursement of EU funds.
- The delayed EU funds are described as vital for digitalization, regional integration, and the green transition.

### Policy recommendations and priorities
- Fiscal policy:
  - A credible and growth-friendly fiscal adjustment plan is needed to safeguard macroeconomic stability.
- Monetary policy:
  - Monetary policy should remain in restrictive territory to deliver a sustainable return of inflation to target.
- Structural and coordination priorities:
  - A coordinated policy approach is needed to:
    - improve Hungary’s productivity,
    - reduce regional inequality,
    - strengthen governance,
    - advance the green transition.

### Subjects and keywords
- Subject: Financial sector policy and analysis, Financial sector stability, Housing prices, Inflation, Prices, Public debt
- Keywords: audit oversight, control environment, Europe, Financial sector stability, Global, holdings of SDR, holdings rate, Housing prices, Inflation, inflation pressure, safeguards assessment of the Magyar Nemzeti Bank

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## Content in this bundle

- **1hunea2024001-print-pdf**
  - [1hunea2024001-print-pdf (Markdown version)](/-/media/files/publications/cr/2024/english/1hunea2024001-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1hunea2024001-print-pdf (PDF)](/-/media/files/publications/cr/2024/english/1hunea2024001-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/08/02/hungary-2024-article-iv-consultation-press-release-and-staff-report-553126_