Published yesterday, the European Commission’s 2020 country report on Hungary paints a balanced picture of Hungary’s economic performance and gives a nod to its macroeconomic processes.
(Read the full report here.)
“In recent years, Hungary has experienced a strong economic expansion with one of the highest GDP growth rates in the EU,” the report reads citing an average economic growth rate that has exceeded 4 percent since 2014. The European Commission further noted that Hungary demonstrated its ability to withstand an international slowdown in 2019 by maintaining GDP growth at record levels. For the most part, the report continued, this was due to “supportive macroeconomic policies,” domestic demand and record-high foreign investment.
Even though the report predicts that economic growth in 2020 will be a bit more moderate, it still places Hungary among Europe’s top performers. Meanwhile, it sees state debt continuing to follow a downward trajectory (it recently dropped below the 70-percent mark) as a result of Hungary’s low budget deficit and stellar growth.
On employment, one of the characteristically well-performing areas of the Hungarian economy since 2010, the European Commission found that “favorable labor market trends have helped improve living conditions and reduce poverty.” Indeed, Hungary’s unemployment rate fell to an all-time low, with employment figures reaching record highs and all sectors of the national economy registering steep wage growth.
On taxation, the country report commended the Hungarian Government’s efforts to simplify the tax system and highlighted measures aimed at whitening the economy and reducing administrative burden.
Here’s to another year of bullish economic growth in 2020!