Hungary’s Economic Outlook Bleak According to OECD Projections
Hungary’s Economic Outlook: OECD Lowers GDP Forecast to 0.0%
The Organisation for Economic Cooperation and Development (OECD) has lowered its forecast for Hungary’s gross domestic product (GDP) in 2023 to 0.0 percent. In the biannual Economic Outlook published on Wednesday, the forecast was reduced from 1.5 percent in November. The OECD cited high inflation, tight financial conditions, and economic uncertainty as holding back household purchasing power, consumption, and investment. It projected an average annual inflation rate of 19.2 percent for 2023 and the contraction of investment volume by 3.5 percent.
Hungarian Foreign Minister Requests OECD Action Regarding Ukraine’s Blacklisting of OTP Bank
On Wednesday, Hungarian Foreign Minister Péter Szijjártó called on the Organisation for Economic Cooperation and Development (OECD) to take action to remove Hungary’s OTP Bank from Ukraine’s list of international sponsors of war. Szijjártó stated during an OECD ministerial council meeting in Paris that the conflict in Ukraine had an “absolutely serious” impact on neighbouring countries and that Hungarians were among the casualties. He said that Hungary’s largest humanitarian aid operation in history is aimed at supporting the refugees who entered the country and providing education opportunities for refugee children. The minister noted that Ukraine’s authorities had added OTP Bank to their list of international sponsors of war, although the bank has not violated any regulations in Ukraine or internationally. The minister urged the OECD to intervene to remove OTP from the list and prevent further obstacles to enhanced cooperation with Ukraine.
