IMF warns and applauds
IMF executives congratulated Hungary for addressing the budget deficit and for reestablishing credibility. However, they emphasized that the task at hand is still gigantic and that the risk did not cease to exist.
The regular economic policy consultation closed on July 18, and the documents published on Thursday state that the risk still lies in the fact that the external deficit and the budget deficit are still high, and the ratio of state debt and foreign debt relative to the GDP is also likely to remain at a high level.
The favorable market opinions may deteriorate if the balance of the external deficit and the budget deficit gets worse. The delays in economic growth cause setbacks in the wages catching up and are enhancing economic vulnerability. The executives agreed with the central bank (MNB) recently cutting the bas rate, because the inflation rate reached its peak, and during the upcoming period, it is likely to move back to the target range. According to their statement, the financial health of the bank sector is appropriate: the banks are making good profit and they are promisingly capitalized. (Gazdasági Rádió, Napi Gazdaság)
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