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Facts & Statistics

OECD expects strong economic growth in Hungary

The latest forecast is more than 2 percentage points higher than the OECD's May forecast.

The Organisation for Economic Co-operation and Development (OECD) expects Hungarian economic growth of 6.9 percent in 2021 in its latest “Economic Outlook” published on Wednesday, the Ministry of Finance told MTI on Wednesday.

According to the ministry’s statement, the forecast for this year is more than 2 percentage points higher than the growth rate in the OECD’s May forecast, while the publication predicts 5 percent economic growth in 2022.

The Hungarian economy’s growth could be driven by investment and consumption, further supported by a steady decline in unemployment, a rapid vaccination program and an early reopening, OECD experts said. The experts forecast a budget deficit of 7.5 percent in 2021 and expect fiscal policy to gradually consolidate by 2023.

The group also expects the government deficit to decline by nearly 2 percentage points per year, as well as a decline in public debt.

The study projects the global economy’s performance in 2021 to be slightly lower than previously forecast, but to remain at a high level of 5.6 percent, while the next two years could see a slower but still meaningful period of growth. The fiscal stimulus packages were unavoidable worldwide, and government measures have mitigated the negative effects of COVID-19, they say.

The experts add that advanced economies are expected to reach their pre-crisis performance levels by 2023 but will face severe imbalances in the period ahead. According to the paper, the different levels of rebalancing could make the recovery process uneven between advanced and emerging market economies. 

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