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Persistently High Deficit, Rising Debt – Imf Warns Hungary of Difficult Years Ahead
6 Articles
6 Articles
According to the International Monetary Fund, Hungarian public debt could approach 80 percent by the end of the decade.
According to a recent IMF forecast, Hungary's public debt could approach 80% of GDP by 2030, as no significant deficit reduction is expected in the next five years. High interest expenses will continue to burden the budget, while financing reserves remain tight.
They do not see the dynamics envisioned by Márton Nagy and his family, the deficit cannot be reduced without major adjustments, and interest expenses are increasing.
Hungarian banks' exposure to government securities is also particularly high, which is a problem because if the government fails to increase its room for maneuver, it will have nowhere to turn in the event of a global crisis.
According to the latest report from the International Monetary Fund, huge adjustments would be needed in Hungary between 2025-28 to reduce the deficit as a percentage of GDP to below 3 percent from the current 4.7, but in their opinion, the government will not do this.
There will be no meaningful deficit reduction in Hungary in the next five years, which is why public debt could be on an upward trajectory in the medium term, approaching 80% by the end of the decade, according to a recent forecast by the International Monetary Fund (IMF). According to the organization's experts, the Hungarian state will still be forced to pay a significant amount on interest, and in addition, we would not have many financing re…
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