The European Commission acknowledged Hungary's tax reductions, economic growth, job creation policy in the Country Report Hungary 2017.
The EC analysis notes that the external and internal balances of the Hungarian economy have improved in parallel with steady GDP growth of an increasingly stable composition, reducing both debt and exposure to external risks. Thanks to the prudent fiscal policy, the general government budget deficit is expected to remain well below 3 percent of GDP. As a result of falling deficits and accelerating GDP growth, the government debt-to-GDP ratio is seen to decline to 71 percent by 2018. Improving competitiveness and export performance have led to massive foreign trade and current account surpluses.
The report also emphasizes that multi-step wage increases and payroll tax cuts about to be implemented and will substantially boost economic growth, reduce taxes and contribute to productivity growth.
