IMF says Hungary needs structural reforms

Budapest, November 17 (MTI) – Hungary’s commitments to reduce its budget deficit to below 3 percent of GDP is welcome but it needs to implement structural reforms in order to keep the deficit low, the head of the International Monetary Fund’s local representative said on Wednesday.

Speaking at the Budapest Corvinus University Iryna Ivaschenko said structural efforts are missing from the budget and reforms are needed in areas, such as public transport, welfare and public administration.

    The sectoral taxes introduced by the government mainly affect foreign investors, yet the country strongly needs foreign investments, Ivaschenko said.

    The IMF expects 2.5-2.75 percent economic growth in Hungary next year, she added.