Matolcsy says rethink on deficit spending needed to restore balance

The way in which Hungary narrows the gap with more advanced economies requires a rethink so that not only is growth the aim but sustainable growth is too, Gyorgy Matolcsy, the governor of Hungary's central bank (NBH) wrote in an op-ed published on Monday. Balance in all areas is necessary when it comes to narrowing the gap, but currently financial balance is most germane to this goal. The crisis, the subsequent crisis management and recovery have been accompanied by rapid deterioration in all the balance indicators, Matolcsy said. The high budget and current account deficits are such that Hungary is again trapped in a twin deficit, one that it successfully emerged from after 2010. But now the associated risks are greater, he argued.