The International Monetary Fund (IMF) has acknowledged Hungary’s swift and strong response to the coronavirus crisis, the National Bank of Hungary (NBH) said on Monday.
IMF staff held consultations with representatives of the central bank, the finance ministry, the ministry of innovation and technology, commercial banks and sectoral associations at the end of April, the NBH said in a statement.
Hungary’s swift vaccination drive will allow it to reopen its economy earlier than most European Union member states, allowing the recovery to start as early as this year, the central bank cited the IMF as saying.
The IMF said continued, well targeted fiscal support would be needed as long as the recovery “is not well entrenched”, but added that any revenue windfall from a faster-than-expected rebound should be saved.
It added that the central bank should be prepared for growing inflationary pressure.
The NBH said the IMF had also acknowledged Hungary’s efforts to boost its level of competitiveness, but urged further improvements to allow the economy to respond strongly to the challenges posed by demographic changes and climate change.