According to the announcement, the IMF expects enhanced economic growth, lower inflation and continued low unemployment in Hungary, Finance Minister Mihály Varga said after attending the annual general meeting of the IMF and World Bank in Washington.
Through a policy of economic neutrality, our country can maintain its improved economic prospects even in an uncertain international environment. Mihaly Varga explained that according to the International Monetary Fund's latest global economic forecasts, the Hungarian economy could grow by 2.9 percent next year, the fifth best result among the 27 EU member states.
The Minister of Finance explained that there is still a great deal of uncertainty in the global economy, while countries around the world are at risk of lower growth and higher debt levels. According to Valutaalap, global management of growth challenges and public debt problems is of paramount importance, so budget consolidation and growth-stimulating reforms by countries are needed, Mihaly Varga informed.
This is in line with the goals of the Hungarian government. Between 2010 and 2019, Hungary implemented one of the largest debt reductions in Europe, and since the onset of the pandemic, it has been working to improve the level of public debt as a share of GDP every year. “We will reduce Hungary's budget deficit to less than 3 percent by 2026, while increasing economic growth to a level between 3 and 6 percent,” he added.
According to the announcement, Mihaly Varga emphasized: “In recent years, we have put our country’s relationship with the IMF on a new basis, and today we can participate in the General Assembly of the IMF and the World Bank in a completely different way.” framework than it was around 2008. The IMF also recognizes the Hungarian solution based on a work-based economy, and agrees to gradually reduce the budget deficit and public debt.
