The OECD forecast for Hungary is not too bright

The OECD lowered its forecast of Hungary’s GDP in 2023 to 0.0 percent in its biannual Economic Outlook published on Wednesday.

The forecast was lowered from 1.5 percent in November.

“High inflation is eroding household purchasing power and consumption, while tight financial conditions and economic uncertainty are holding back investment,” the OECD said.

The OECD has put average annual inflation at 19.2 percent for 2023. It projected investment volume would contract by 3.5 percent.

Szijjártó asks OECD to act on Ukraine’s blacklisting of OTP Bank

The Hungarian government requests that the OECD take action to ensure that Ukraine removes Hungary’s OTP Bank from its list of international sponsors of war, Foreign Minister Péter Szijjártó said in Paris on Wednesday.

The war in Ukraine is having an “absolutely serious” impact in neighbouring countries, Szijjártó told an OECD ministerial council meeting, according to a ministry statement, adding that Hungarians were also dying in the fighting.

Hungary therefore has a vested interest in the war ending as soon as possible, he said.

Szijjártó said Hungary was undertaking the largest humanitarian aid operation in its history in connection with the war, with over one million refugees having entered the country and around 1,300 schools having welcomed refugee children.