OECD Puts Hungary 2024 GDP Growth at 2.1%
Photo by rafapress / Shutterstock.com
The OECD forecasts Hungary's GDP will climb 2.1% in 2024 in its biannual Economic Outlook published on Thursday, according to a report by state news wire MTI.
The OECD lowered the forecast from 2.4% in the previous outlook released in November. The fresh forecast is under the government's official projection for 2.5% GDP growth.
The OECD sees Hungary's GDP growth accelerating to 2.8% in 2025.
Growth is expected to be underpinned by lower inflation and interest rates, supporting private consumption and investment, the OECD said, while noting risks posed by international trade and global commodity prices. It added that the "main uncertainties" for the Hungarian economy concerned the pace of fiscal consolidation and the outcome of the negotiations about the delivery of European Union funds.
The OECD pointed to the need for further fiscal consolidation and said reforming the public pension system would be "key" to containing the projected increase in aging-related costs. Productivity growth could be bolstered by strengthening competition in the energy, transport, professional services and telecommunication sectors, while a wider diffusion of digital skills would accelerate the digitalization of firms, it added.
HU-rizon Program: HUF 8 bln Funding for International Resear...
Marcelito Pomoy to Perform in Budapest Next Week
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
