IMF forecast: Hungarian economy to return to growth this year
The IMF forecasts 3.3 percent growth for 2025, and only Malta, Romania and Poland are expected to grow at a faster clip of 3.5-4.0%.
The IMF forecasts 3.3 percent growth for 2025, and only Malta, Romania and Poland are expected to grow at a faster clip of 3.5-4.0%.
Minister Varga said this year Hungary will take up the presidency of the European Union “for the second time amid challenging times”.
Chinese banks “have trust in the Hungarian economy”, the finance minister said, noting that several Chinese banks have selected Hungary as a base in recent years.
The two ministers agreed that building further infrastructure links between the two countries was necessary, with special regard to direct flights.
“The mayor has not paid taxes since last June … Budapest has rejected to pay 46 billion forints in solidarity tax until March,” Minister Varga said.
Minister Varga said the government was committed to reducing the budget deficit and the public debt with a view to ensuring sustainable growth.
Hungary’s economic output is now 5% above pre-pandemic levels, while the EU average is 3.5% higher than before the pandemic.
The Finance Ministry, in consultation with the European Central Bank, is considering extending the powers of the central bank’s supervisory board over activities external to the bank’s core tasks.
“We’ll keep the economy on a growth path, reduce the budget deficit and the state debt this year,” the finance minister said.
Finance Minister Mihály Varga said inflation fell to 5.5% in December from 25.7% in January 2023.
Minister Varga said the solidarity contribution is paid by 724 cities, including Budapest, Hungary’s richest city.
Finance Minister Mihály Varga said the projected 2.4% growth for Hungary is well above the EU average of 1.3%.
While 2023 had been a better year for the central budget than 2022, it was not as good as what the government expects from this year, the finance minister said.