Hungary’s Growth Potential Low, Says OECD

  • 28 Jan 2014 8:00 AM
Hungary’s Growth Potential Low, Says OECD
Hungary’s growth potential is “worryingly low”, the OECD said in a country survey released on Monday. The Paris-based Organisation for Economic Cooperation and Development stuck to its growth forecast for Hungary’s economy made in November of 2% this year and 1.7% in 2015.

“Growth potential is held back by weak investment, low employment among low-skilled workers and shortcomings in labour and product markets, making further structural reforms essential.”

Monetary easing has helped Hungary’s return to growth but it is still unclear whether the central bank’s lending for growth scheme is creating new lending or displacing other credit, it said, adding that the scheme should be reassessed before being expanded.

Source www.hungarymatters.hu

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