Hungary's government-deficit data was better than the International Monetary Fund (IMF) or the European Commission predicted in both 2011 and 2012, the National Economy Ministry noted after the organizations concluded 2013 Article Iv Consultation and Third Post-Program Monitoring in Budapest on Monday.
The National Economy Ministry said that the delegation from the EC and the IMF had met with officials from Hungary's government, the National Bank of Hungary, the Hungarian Financial Supervisory Authority (PSZÁF) and others involved in the domestic financial-sector while in Hungary.
The European Commission announced after the conclusion of the meetings on Monday that the EC welcomes the fiscal consolidation achieved so far in Hungary and the commitment of the government to continue its efforts to keep the deficit well below 3% of GDP, while the commission encourages the government to pay close attention to the quality of the adjustment measures in order to ensure a sustainable correction that supports growth and confidence.
The International Monetary Fund announced after the conclusion of the meetings on Monday that favorable global market conditions have eased government funding pressures, but the economic outlook remains difficult for Hungary, noting that the country's economy is in the midst of a second recession in four years with consumption and investment falling and unemployment remaining stubbornly high.
The National Economy Ministry said following the meetings on Monday that Hungary's government-deficit data was better than the IMF and the EC forecast in both 2011 and 2012, noting that the government recorded a surplus in the former year and that preliminary data suggests that the government deficit met its deficit target of well below 3% of GDP in the latter year.
The National Economy Ministry said that the government's economic measures have served to ensure the sustainability of Hungary's finances over the long-term. The ministry added that the government will continue to keep the deficit under 3% of GDP, because it is committed to having Hungary removed from the European Union's Excessive Deficit Procedure.