Dec 7, 2010
| Last Updated
- An export-led recovery, helped by a strong economic performance in Germany, has spurred Hungary’s return to growth.
- The government has enacted temporary “crisis taxes” on select sectors to achieve a budget deficit of below 3% of GDP in 2011, but concern over the longer-term sustainability of public finances remains.
- We expect further monetary tightening in coming months, ahead of a scheduled monetary council reshuffle in March, due to the country’s deteriorating risk perception and above-target inflation.
Growth Dynamics: Slow Road to Recovery Fraught With Risk
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