According to a ministry forecast for the 2021-2025 period, the 2022 budget law targets growth of 5.2 percent, but government measures are expected to lift consumption. Household consumption in 2022 is likely to increase by 6.7 percent, up from 3.6 percent expected this year. Personal income tax forgiveness for young employees and a rebate for households with children, as well as a pension supplement, among other measures, may add 1.63 percentage points to GDP growth next year, the ministry said. It added that economic growth was expected to exceed 4% every year between now and 2025.
Meanwhile, the public debt-to-GDP ratio is expected to fall to 69.3 percent by 2025 from the 79.9 percent estimated for this year. Thanks to the swift economic recovery, the budget deficit is expected to narrow to 1.5 percent of GDP by 2025 from the 4.9 percent projected for 2022, it said. Hungary’s improving economic indicators put the country in a better position to face global economic risks, strengthen its financial stability and boost investor confidence, the ministry said.