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25.06.2024 / Erste Group Research

High pressure economy: What have we learned?


The aim: speed up the convergence

The concept of high pressure economy (HPE) has emerged recently, as the economic policy addressed their intention of bringing it back to boost economic growth. HPE was the major doctrine before the pandemic: the monetary policy of the central bank (MNB) and the fiscal policy were both supporting it. Although the general conditions before 2020 had allowed to launch and pursue the HPE, as the negative implications were not too severe, risks of reemergence of economic balance problems are much higher now. In the current changed external and internal environment, it might even cause welfare losses mainly via possibly rising inflation and currency weakening. All in all, Hungary should find a different way to catch up with the top performers of CEE via to a more extent focusing on productivity increase.


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Základní informace

AutorErste Group Research
Datum25.06.2024
Jazyken
Název produktuCEE Economies Special Report
Hlavní témaMakro/Úrokové sazby, Směnné kurzy/FX
Zaostřeno na ekonomikuMaďarsko
Zaměřeno na měnuMaďarský forint
Zaměřeno na sektor-
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