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.
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