OECD - Organisation for Economic Co-operation and Development

07/23/2026 | Press release | Distributed by Public on 07/23/2026 06:38

OECD Economic Surveys: Hungary 2026

Abstract

To prepare for population ageing and climate change, Hungary needs to increase fiscal space and support long-term growth. Reforming the tax system, making the economy more resilient to climate risks, increasing opportunities for women and young people in the labour market, and supporting the development of domestic SMEs are possible strategies discussed in this Survey.

Increasing fiscal space could be achieved through a mix of policies aiming at reforming pensions, improving public spending efficiency and broadening the tax base. Hungary should start by securing EU funds and cutting tax expenditure.

Reducing emissions in the transport and residential sectors is key and would help improve energy security. Hungary also needs to adapt to rising climate risks by further improving insurance coverage in high-risk areas, land-use regulations and incentives for adaptation investment.

Aligning family leave entitlements with international practices and raising early childcare supply would support fertility and women's labour market participation in a cost-effective way. Improving youth labour prospects requires leaving no one behind at school and boosting higher education.

SMEs would benefit from improved and more stable regulations, a full implementation of the public integrity framework, easier access to financing, and more targeted government support for investment. Developing human capital will be key to alleviate skill shortages and facilitate SME integration in GVCs.

SPECIAL FEATURE: ENHANCING OPPORTUNITIES FOR SMEs

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OECD - Organisation for Economic Co-operation and Development published this content on July 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 23, 2026 at 12:38 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]