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Swift action is needed to stabilise the Hungarian economy and put growth on a sound footing for a durable recovery, according to the latest Economic Survey of Hungary. Strengthening the credibility and predictability of domestic policies and undertaking much-needed fiscal consolidation will be key.
This slight easing in the annual rate of inflation mainly reflected the slower growth in energy prices, which increased by 7.4% in the year to January, down from 8.1% in the year to December.
The pace of reform has accelerated in those OECD countries where it is needed most, says the latest Going for Growth report. It identifies the specific action needed to help governments steer their economies out of the crisis, stimulate growth and create jobs.
Provisional estimates show that quarterly gross domestic product (GDP) growth in the OECD area decelerated sharply to 0.1% in the fourth quarter of 2011, against 0.6% in the third quarter.
Germany recovered rapidly from the 2008-09 recession, with GDP topping pre-crisis rates during 2011 and unemployment falling significantly. Public finances are sound, but further reforms are needed to transform its growth model to thrive as a knowledge-based economy.
Composite leading indicators (CLIs) point to a positive change in momentum for the OECD as a whole, driven primarily by the United States and Japan, but similar signs are beginning to emerge in a number of other developed economies.
Finland enjoys high well-being, but competitiveness has deteriorated, output has fallen and the population is ageing rapidly. Structural reforms are needed to extend working lives and raise public sector efficiency and potential growth.
Europe's sovereign debt crisis has exposed structural weaknesses in economic governance that now threaten the entire euro region. Efforts to reinforce public finances and preserve the currency union must go further than solutions proposed to date.
This easing in the annual rate of inflation mainly reflected the slower growth in energy prices, which increased by 8.1% in the year to December, down from 11.6% in the year to November.
Switzerland has made a broadly balanced recovery from the economic crisis, but slower activity in Europe and pressures on the Swiss franc weigh on the near-term outlook, according to the latest Economic Survey of Switzerland.