The International Monetary Fund has recommend that Hungary put in place monetary easing measures to enable its economy to avoid deflation. In a document published at the end of January, it wrote that GDP is strengthening as the country’s private sector employs more people, while macroeconomic policies have reduced some of the frailties that existed before the financial crisis. “But the country remains susceptible to shocks and its medium-term growth prospects are subdued,” wrote the IMF.
“There is a need for gradual fiscal consolidation based on more efficient, equitable, and growth oriented public expenditure and tax policies. Progress on the fiscal front needs to be complemented with structural reforms to unleash Hungary’s growth potential and improve its attractiveness as a place for domestic and foreign entrepreneurs to create more jobs and innovate.”
