Fiscal policy has been supportive
Environmental concerns remain
Productivity growth has been low
Low adoption of advanced ICT
The COVID-19 pandemic had severe health and economic impacts
Income convergence has gathered pace
Violence against women has increased during the pandemic
The healthcare situation worsened in the second and third waves of the pandemic
High bed capacity was not matched by similar intensive care capacities
Capacity reallocation may increase mortality from other causes in the future
Economy activity contracted sharply in 2020
Better-targeted measures in the second wave moderated the economic decline, with tourism as a notable exception
Government support averted bankruptcies
Production and confidence continue to recover
Employment growth was driven by the expansion of large firms
The labour market weakened temporarily as the pandemic spread
The short-time work scheme provided a relatively low replacement rate
Unemployment of young and low-skilled workers increased before coming down again
Wage growth outpaces productivity improvements
The labour tax wedge remains high despite lower social security contributions
Wage and inflation pressures remain high
Supply chain disruptions are slowing down the recovery of the automotive sector
Automotive products dominate exports
Monetary policy remains accommodative despite inflationary pressures
Bank lending is strong and the share of non-performing loans has fallen
Banks’ low profitability and high operating costs remain a concern
EU funds support many activities
Spending pressures related to population ageing need to be addressed
Green growth indicators have mostly improved
Carbon pricing score
An aging car fleet is increasingly based on diesel
Landfill taxes are low
Tariffs for water and wastewater services are low
Strong investment drove productivity growth before the crisis
Business dynamics are low
The insolvency regime is stringent
Occupational entry barriers remain high
Corruption is perceived as high compared with other OECD countries
Anti-money laundering measures should be enhanced
Regional differences in employment and unemployment are large
The minimum wage is relatively high
Housing supply adjusts relatively slowly
Nursery enrolment remains low
The gender pay gap is high for women in their 30s and 40s
Women’s work-life balance hampers their career prospects
Labour productivity remains low
The productivity gap between foreign and domestic enterprises is large
Employment rates of VET graduates are high but few work in high-skill jobs
Higher education graduates have relatively high skills and wages
Labour turnover is low
High unemployment in poorer regions contrasts with labour shortages in richer regions
The rental market is small
Labour market policy spending on training and job placements is low
The minimum wage has grown more strongly than the average wage
There is scope to ease market entry and exit
The competition authority’s budget is low and its caseload is high
Stakeholder consultation in formulating regulations could be improved
Competition in public procurement is low
Government loan schemes remain abundant
Venture capital funds for company expansion remain low
There are large regional disparities in road infrastructure
Hungary is less digitalised than most other OECD countries
Mobile broadband prices remain relatively high
High-speed broadband uptake among businesses is relatively low
Adoption of digital technologies lags behind
Streamlining regulations could boost digital technology adoption and productivity
Restrictions to trade in digital services are relatively high