Márton Nagy: the government expects 2-3 percent growth next year

By: Trademagazin Date: 2025. 11. 27. 12:36

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The new central pillars of the government’s economic policy are the 3 percent loan programs, the continuous tax cuts and the reconstruction of the 14th month pension, with which GDP could grow by 2-3 percent in 2026 from this year’s 0.5 percent, and in addition to consumption, investments will also support next year’s expansion – said Minister of National Economy Márton Nagy at the annual hearing at the meeting of the Economic Committee of the Parliament on Thursday.

He said that due to the war and the decline of the German economy, government steps were necessary to protect the population and businesses from the negative consequences. He added that the Hungarian economy is closely integrated into the European and German economies, and has been struggling with recession for the past three years, while the EU has been struggling with competitiveness problems.

The growth is due to consumption, which accounts for 60-70 percent of GDP, which expands by about 5 percent annually and alone improves GDP by 1.8-2 percentage points.

He emphasized that consumption-led growth is desirable in the short term because it offsets the weakening of external demand and helps domestic entrepreneurs, but in the longer term, the investment-led model is the goal.