Transcription of HUNGARY - OECD.org
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HUNGARY - OECD.org
3. DEVELOPMENTS IN INDIVIDUAL OECD AND SELECTED NON-MEMBER ECONOMIESOECD ECONOMIC OUTLOOK, VOLUME 2018 ISSUE 2 PRELIMINARY VERSION OECD 2018123 HUNGARYThe strong economic expansion is projected to slow gradually in the next two consumption will be supported by real-wage gains and record-high employment,while investment will be boosted by housing construction and corporate activity, as wellas disbursements of EU structural funds, albeit at a slower rate. Tight labour marketconditions will raise inflation, projected to reach 4% in 2019. As capacity constraints bite,demand is increasingly met by imports, and growth will gradually lose and monetary policies are expansionary. Tax cuts and public spendingincreases were introduced in 2018, and further tax cuts are scheduled for 2019. Thecentral bank has maintained policy rates on hold although headline inflation exceeds itscentral target of 3%.
3. developments in individual oecd and selected non-member economies oecd economic outlook,volume 2018 issue1–preliminary version © oecd 2018 153 hungary
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