The Ministry of National Economy links economic growth to peace

As they highlighted, the driving force of the economy is consumption, while investments are also becoming increasingly decisive, this is further strengthened by government measures.

Strict budgetary discipline, expenditure control and brisk consumption keep the budget in balance, which generates all the necessary resources for government programs supporting families, pensioners, young people and Hungarian SMEs – such as the Home Start Program, the doubling of the family tax allowance, the exemption from personal income tax for mothers with three and then two children, the 30,000-forint food voucher for pensioners or the Demján Sándor Program supporting SMEs.

The statement cited data from the Central Statistical Office (KSH), according to which GDP increased by 0.2 percent in the second quarter of 2025 compared to the same period of the previous year, while GDP increased by 0.4 percent compared to the previous quarter, according to adjusted data.

According to the NGM’s estimate, the Hungarian economy could achieve an annual GDP growth of around 1-2 percent in the third and fourth quarters of 2025, thus a GDP growth of 1 percent is expected for the year as a whole.

The second quarter GDP development was negatively affected by the unfavorable external environment (e.g. the tariff war and the weak performance of the German economy), as well as the weaker performance of agriculture, which can be traced back to the drought caused by unfavorable weather, which was offset by the growth of the service sectors thanks to brisk consumption, and the turnaround in the construction industry – the ministry analyzed.