Márton Nagy: there is a consumption trap behind the growth slowdown

By: Trademagazin Date: 2023. 06. 27. 16:56

Marton Nagy, Minister of Economic Development, wants to debate whether it is worthwhile to reduce inflation to the previously targeted level. He believes that due to changes in the global and Hungarian economic structure, economic growth has become a more pressing issue than currency depreciation.

He discussed this on the Inforadio Arena program. He does not intend to interfere with the central bank’s inflation-stabilizing mandate, but he seeks a debate on whether it is worth allowing a higher inflation rate than previously targeted, considering the rapidly changing structure of the global and Hungarian economies, and the increasing importance of returning to rapid economic growth compared to inflation, which is already slowing down. Marton Nagy spoke about this on the Inforadio Arena program. The minister stated that after decreasing to 21.5% in May, inflation could drop below 20% in June, and the single-digit level targeted for the end of the year could be achieved as early as October or November.