Hungary govt official addresses World Bank/IMF annual meeting

The latest forecast of the International Monetary Fund (IMF) is in line with the Hungarian economic policy’s expectations for next year, the state secretary for macroeconomic and international affairs said at the annual meeting of the IMF and the World Bank in Marrakesh on Thursday.

Speaking to MTI by phone, Tibor Tóth said governments, central banks and financial sector players are looking for solutions to the issues of climate change, debt reduction and the digital transition at this year’s annual meeting.

The IMF projects 3.1 percent GDP growth for Hungary in its 2024 forecast, the highest among the V4 countries and more than double the 1.5 percent growth rate predicted for the European Union as a whole, Tóth said.

As regards inflation, the IMF expects the consumer price index to fall into the single digits this year, projecting CPI of just over 8 percent at year-end and 6.6 percent annual average inflation in 2024. This is in accordance with the finance ministry’s forecast of 6 percent for next year, Tóth said.

He pointed out that negotiations with the IMF have changed significantly. While during the 2008 crisis, the then government asked for financial assistance, the current period is characterised by partnership and exchange of experience. The IMF’s crisis management policy has changed a lot partly because of Hungary’s successes; earlier it had considered austerity as the only way out of crises, whereas now it pursues a supportive economic policy, Tóth said.

Source: MTI