Cover IMF Staff Country Reports
Hungary: Selected Issues Paper
Author: International Monetary Fund
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2013: Issue 086
Language:
English
Publication Date:
29 Mar 2013
DOI:
https://doi.org/10.5089/9781484310212.002
ISBN:
9781484310212
ISSN:
1934-7685
Pages:
52
Keywords:
ISCR; CR; investment; output; bank; data quality; inertial consumption dynamics; NPLS ratio; NPL shock; asset quality; Nonperforming loans; Consumption; Fiscal consolidation; Public investment spending; Global; Europe
Download PDF (2.5 MB) Download Epub
Non-performing loans (NPLs) were found to respond to macroeconomic conditions, such as GDP growth, unemployment, and inflation; there are also strong feedback effects from the banking system to the real economy. This suggests that the high NPLs that many CESEE countries currently face adversely affect the pace of economic recovery. The note also evaluates different policy options to achieve permanent fiscal consolidation in Hungary. A fiscal consolidation based on a reduction in government transfers can stimulate labor participation, and a resulting increase in the returns to capital can increase investment and output in the long term.
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund