Márton Nagy: in the long term, we must return to investment-based economic growth

By: Trademagazin Date: 2025. 05. 22. 11:36

In the long term, we must return to investment-based economic growth; consumption-based growth is unsustainable – said the Minister of National Economy on Thursday at the Portfolio Lending 2025 conference in Budapest, while according to the latest data from the Central Statistical Office, investments have fallen significantly.

Economic growth is now being supported by consumption, which is necessary in the short term, but does not mean that we must switch to consumption-based growth – emphasized Márton Nagy.

The minister explained that in the European Union, Hungary is in the first third in terms of consumption, but at the same time it is behind in terms of industrial and investment data. The Hungarian economy has split into two, since 2023, investments have been pulling GDP down, while consumption has been pulling GDP up.

This duality is not good, in the long term, both driving forces must be pushed in a positive direction – he said.

The increase in domestic GDP will accelerate in the coming quarters, driven primarily by consumption, but according to the government’s expectations, investment will also be able to contribute to growth with the opening of new factories by the end of the year, emphasized Márton Nagy.