Hungary's economic recovery is a success: Economic output grew this year by 6.1 percent, investment expanded by over 12 percent, employment rose to 4.7 million, and the unemployment rate fell below 4 percent. This means that the Hungarian economy will need to be stimulated to a lesser extent through public investment.
The government has decided to delay some investments, significantly increasing Hungary's financial reserves this year by a total of HUF 350 billion while reducing public debt. The forthcoming government decision on increasing the financial reserves of the budget stipulates that the reduction in the public debt ratio must be achieved while the Treasury Single Account maintains a high level.
Hungary was not only among the first to restart its economy, its economy has now exceeded its pre-pandemic performance. This provides an opportunity to improve balance sheet indicators, which will strengthen the financial stability of Hungary and further improve its status in the eyes of investors.
Furthermore, the government is increasing financial reserves while at the same time providing funds for the 13th month pension, family tax rebate, tax exemption for under-25s, and a HUF 750 billion reduction in labor taxes.