Márton Nagy: Domestic consumption is strengthening

Márton Nagy said: last year, the Hungarian economy was pulled back by the high inflation caused by the energy crisis and the consequent fall in consumption. Consumption is starting to recover, but at the same time, the crisis in the German economy has a significant holding back effect this year, he said.

The minister pointed out that growth of around 3 percent can be achieved by boosting consumption, but long-term investments are lacking, and investments in sectors that depend on external demand have fallen.

He emphasized that despite this, it is necessary to do something to get the Hungarian economy back on the growth track, and he mentioned the new economic policy action plan adopted by the government as a means of this.

The Minister of National Economy said that on Thursday morning he consulted with the key actors of the Hungarian real estate development market, and in addition to the 10 points of the 21-point economic policy action plan for affordable housing, they also made progress on two issues.

Within the framework of the capital program, real estate funds could receive HUF 20-30 billion, which should be used for the construction of rental apartments and dormitories; this will start early next year. They are also investigating whether the rate of tax should be 5 percent instead of the 27 percent VAT in the case of rental apartments and dormitories, he explained.

These incentives will boost the market – emphasized Márton Nagy. He put it this way: the 21 points of the economic policy action plan are only the beginning, “there will be 25-30 points from this”.