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Hungary: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion

Author: International Monetary Fund

Volume/Issue: Volume 2007 Issue 250

Publication date: July 2007

ISBN: 9781451818079

$20.00

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Topics covered in this book

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Exports and Imports , Inflation , Public Finance , ISCR , CR , exchange rate , deficit , government , rate , GDP , deficit-reduction measure , market-risk stress tests , exchange regime , inflation expectation , exchange rate framework , executive board discussion , interest rate , foreign currency , Exchange rates , Inflation , Loans , Europe , Central and Eastern Europe , Baltics , Eastern Europe

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Summary

Hungary’s 2007 Article IV Consultation reports that with fiscal consolidation on track for 2007 and 2008, short-term risks have receded, especially owing to the favorable international financial environment. Ensuring that the current economic slowdown does not translate into a prolonged period of low growth is important both for raising standards of living and for containing vulnerabilities. Putting the debt on a sustainable downward trend will also require a substantial decrease in the size of government expenditure in relation to GDP.