GDP picked up in 2014 but economic activity started to slow down slightly and is expected to further decelerate over 2015 and 2016. Domestic demand is expected to remain the main driver of economic growth in the coming years, with a shift from investment to private consumption. Inflation has been decreasing rapidly since 2012 and the external balance of the country is stable, with the current account turning positive in 2010. The number of employed rose to an all-time high and the unemployment rate dropped to an all-time low in 2014. Hungary's general government deficit has been kept under control but the high level of public debt is a source of fragility for the economy.
Hungary is experiencing macroeconomic imbalances, which require decisive policy action and monitoring. In particular, risks stemming from the still highly negative net international position, despite some progress in the rebalancing of external accounts, the high level of public debt as well as the high regulatory burden on financial sector and a high level of non-performing loans which make the deleveraging difficult, continue to deserve attention.
Read a complete analysis of Hungary's economy in the country report 2015 [2 MB]
2015 recommendations in brief
The Commission has made five country specific recommendations to Hungary to help it improve its economic performance. These are in the areas of: public finances; financial sector; taxation; labour market; education.