The macroeconomic impacts of demographic changes in Hungary in the context of the European Union

Emese Kreiszné Hudák, Péter Varga and Viktor Várpalotai ()
Additional contact information
Viktor Várpalotai: Magyar Nemzeti Bank

Financial and Economic Review, 2015, vol. 14, issue 2, 89–127

Abstract: The article provides a review of Hungarian and international demographic trends and examines the macroeconomic impacts of demographic developments in Hungary in comparison with the European Union. Based on available population projections, it is expected that ageing will also characterise Hungarian demographic processes, but the extent of ageing in Hungary may be more moderate than the estimated impact in several regional and Western European countries. According to the population projections and estimations found in the literature, we came to the conclusion that in the long run population ageing is expected to substantially change labour supply, consumption, and savings ratios, dampen growth prospects and potentially exert a disinflationary impact in the upcoming decades. Demographic processes may affect developments in key variables relevant for the conduct of monetary policy and the effectiveness of transmission channels. In addition, population ageing may increase budgetary expenditures through the pension and the healthcare system. The adverse impacts may be mitigated by economic policy measures and adjustment by economic agents. At the same time, demographic processes may also represent an economic opportunity that can be exploited through the adequate reallocation of resources.

Keywords: economic growth; demographic trends; Hungary (search for similar items in EconPapers)
JEL-codes: E21 H50 J10 J11 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://english.hitelintezetiszemle.hu/letoltes/4-k ... ga-varpalotai-en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:14:y:2015:i:2:p:89-127

Access Statistics for this article

More articles in Financial and Economic Review from Magyar Nemzeti Bank (Central Bank of Hungary) Contact information at EDIRC.
Bibliographic data for series maintained by Morvay Endre ( this e-mail address is bad, please contact ).