Finance Minister Mihály Varga said Hungary’s economy is expected to return to growth of around 4% next year.
Minister Varga also highlighted challenges for central Europe such as deteriorating European competitiveness and sanctions related to the war in Ukraine. At an event in Slovakia, he noted that in 2021, after the pandemic, Hungary produced growth of 7.1%, while it notched up 4.6% last year, above the EU average. “Whereas this year won’t be easy and we’ll do well to escape recession”, he said 4% growth can be expected in 2024. In a panel discussion with his Slovakian counterpart, Mihály Horváth, he said the recession would be bypassed in Hungary by preserving jobs and low labour taxes while attracting new investments to Hungary. Varga said the investment rate in Hungary was high, at 28% of GDP, “the highest rate in the EU”, promising good prospects for the upcoming period. FDI, he added, was also at a high level. Varga also emphasised the importance of returning to pre-pandemic budget deficit levels and reducing the public debt. He said the budget shortfall would drop to 2.9% and the budget gave the foundation for predictable planning and sustainable growth.