Concluding its visit to Hungary, the International Monetary Fund delegation said Hungary’s economic policy needs “a new direction in order to guarantee sustainable fiscal consolidation, stimulate growth, build confidence, put the financial sector in order and implement structural reforms.” An IMF official noted that Hungary’s GDP fell by 1.5 percent in 2012 and is expected to stagnate this year.
He added that current favorable market conditions could provide a platform to take corrective action. The delegation predicted the budget deficit could grow in the coming years. Hungarian Economy Minister György Matolcsy, however, said the deficit data is much better than IMF-EU predicted. The ministry said that 2011 produced a surplus and that preliminary data suggests that the deficit remained under 3 percent.
