Hungarian central bank makes recommendations to support sustainable growth

The National Bank of Hungary (NBH) is making 50 recommendations supporting government efforts to shape policy promoting sustainable growth, deputy governor Barnabás Virág told MTI.

The NBH will publish the recommendations in detail later in the week.

Virag said Hungary needs a growth plan that can ensure the automatic recovery of the most important internal and external balances from 2022, in addition to strengthening economic growth.

A pickup in government investments, the reinforcement of state programmes for home construction, investment support measures and targeted tax reductions can all rev up the engine of the economy, he said.

“We have every chance for a successful defence. But to achieve a dynamic recovery, Hungarian economic policy needs to find appropriate balances in at least nine areas,” he added.

He stressed that the delayed impacts of the first wave of the pandemic on areas of the economy such as the labour market and the banking system, must be managed at the same time as the consequences of the second wave.