OECD Survey Projects Economy to Grow 2.4% in 2024

The latest OECD survey projects the Hungarian economy to grow slower than the government's forecast. See a summary below (via Reuters):

• Hungary's economy is projected to grow by 2.4% this year, weaker than the government forecast, and the outlook is subject to significant risks, the OECD said on Wednesday.
• The OECD said the economy could face a bumpy recovery. "Beyond uncertainty related to inflation and energy prices, rising business failures may cause an increase in non-performing loans, which would further reduce credit distribution and weigh on economic activity," it said in its fresh economic survey.
• "Due to slow growth in Hungary's main trading partners including Germany, exports are expected to pick up only progressively in 2024 and 2025." It added that incomplete or late delivery of EU funds that are subject to the implementation of rule-of-law reforms in Hungary was another key risk for investor confidence.
• "The Central Bank will need to remain vigilant and stand ready to keep monetary policy tighter for longer if upside inflation risks materialise," it said.