Gulyás: Economic growth is expected to return next year
Hungary may enjoy the highest economic growth in the region in 2024.
Hungary may enjoy the highest economic growth in the region in 2024.
Minister Varga said the investment rate in Hungary was high, at 28% of GDP, “the highest rate in the EU”, promising good prospects for the upcoming period.
The draft budget calculates a 4% economic growth and a deficit of 2.9% of GDP. State debt is expected to go down to 66.7%, and inflation to an annual 6%.
The economy’s foundations are robust, with one of the lowest unemployment rates in the EU and the number of jobholders stable at around 4.7 million.
The EBRD sees Hungary’s GDP growth picking up to 3.5% in 2024 as external demand improves and real incomes recover.
The finance minister said Hungary’s development level has increased to 77.7% of the European Union average from 66.1% in 2010, allowing the country to overtake Portugal, Romania and Slovakia, among others.
András Balatoni said disinflation is expected to accelerate in the second half of the year and return to the central bank tolerance band in 2024.
Minister Varga said major resources are expected to be spent on energy-efficiency developments and businesses can participate in these as suppliers.
According to official data, the deficit widened by 1,287.0 billion in December alone.
Minister Nagy said Hungary’s government had protected growth which may come to 5% in 2022, and aims to avoid recession in 2023.
KSH has confirmed that the average gross wage in Hungary rose by an annual 16.6% to 497,200 forints (EUR 1,200) in August.
Mihály Varga said measures taken to maintain stability and balance last year should be continued.
Hungary had a 6.5 percent increase in the second quarter of this year which is over 50 percent more than the European Union average.