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Apr 01, 2021

Finance Minister: Hungary’s economy is set to stage a swift recovery

Minister Varga said it was important that the debt level should not rise this year and resources should be provided for government measures to combat coronavirus and restart the economy.

 

Finance Minister Mihály Varga said Hungary’s economy is set to stage a swift recovery from the second quarter and achieve growth of 4-5 percent for the full year.

During an interview with Világgazdaság on Wednesday, the minister said budget amendments to be submitted to lawmakers on May 4 target a declining deficit, adding that a shortfall of 7.5 percent and public debt level of below 80 percent of GDP was likely by year-end. Public debt in the European Union averaged 100 percent last year, he noted.

Minister Varga said it was important that the debt level should not rise this year and resources should be provided for government measures to combat coronavirus and restart the economy while reducing debt levels simultaneously. He said investors were looking out for when and how fiscal policy would return to normal as the pandemic subsides.

Minister Varga noted that Hungary’s vaccination drive is well ahead of the rest of Europe and the economy was ready for relaunch. A return to growth would happen “surprisingly fast”, he said. The second half of the year will see robust growth data, he said, adding that current calculations indicate full-year growth of 4-5 percent.