Today, the food industry is not “only” a strategic issue, but also a national security issue

By: Trademagazin Date: 2024. 05. 10. 12:12

Banks play an important role in boosting the Hungarian economy, the rate of which depends on the development of consumption and how long the war in Ukraine will last, said the Minister of National Economy on Friday in Budapest, at the conference of the Hungarian Bank Association celebrating its 35th anniversary.

Márton Nagy is confident that the revival of consumption can be faster than expected. Based on this year’s data, the financial prudence that strengthened during the crisis among the population is gradually easing, and the improvement in the income situation is perceptibly filling Hungarian households with confidence, he said. The increase in real wages alone does not stimulate consumption, but the increase in household spending is confirmed by both tourism and credit market data – he emphasized.

The market for corporate loans is more restrained for the time being, but the signs of an increase in investment activity are already visible – added the head of the ministry, who believes that it is important that economic growth is not only perceived by large companies and wealthier households. For this reason, the government advocated the increase of the minimum wage in December, wage improvements, fuel price reductions, and programs supporting small businesses. Márton Nagy believes that there are significant reserves in the labor market, as many as hundreds of thousands of the inactive can find work. Increasing exports is a bigger challenge due to the weakening of European markets, and the Hungarian EU presidency will be responsible for this. Among other things, the minister urged the promotion of electric cars so that the domestic battery production receives enough orders.