중동부유럽

Robust growth is being driven by investment recovery and household consumption. Investment grew at double-digit levels in 2017 and the first half of 2018, driven by rising credit to the private sector and accelerated European Union (EU) funds absorption.

The state is gradually reducing its ownership in the banking sector. Following a successful sale of its stake in the small-sized Granit Bank, the government has committed to privatising the Budapest Bank, but the procedure has been delayed.

The tax wedge has been gradually reduced. New measures are being introduced to continue with cuts to employers’ social security contributions, helping to bring down the tax wedge which is among the highest in the OECD.