Finance Minister Mihály Varga said Hungary’s economy could grow by 1.8-2.2% this year and 3.5% could be achieved “by all means” next year.
Minister Varga told commercial channel M2 that it was “good news” that in a European comparison, Hungary’s second-quarter growth figures were the third highest behind Portugal and Spain. The Russian-Ukraine war continues to weigh on European economies, with competitiveness problems and high energy prices also having an effect, he said. Germany’s struggle with its challenges and a crisis has also dragged Hungary down, Varga said. He expressed hope that the next half year would see Germany returning to economic growth, which in turn could boost Europe. He said he was optimistic about the future, with all international forecasts showing significant growth in the Hungarian economy. The economy will expand in the second half, but developments in the US will be decisive, he added. Minister Varga said that 3.5% economic growth was feasible by all means for 2025, with 1.8-2.2% being a realistic projection for this year. An uninterrupted increase in real wages for the past 9 months and expanding consumption also support growth, he said. Hungary received investment grade rating from rate-setters in May-June, and the government measures of June will help maintain the positive ratings in the autumn, he said.