NGM: the weakness of the export markets continues to worsen the performance of the industry

By: Trademagazin Date: 2024. 05. 08. 12:44

Based on the data of the Central Statistical Office, in March 2024, according to calendar-adjusted data, the volume of industrial production decreased by 2.8 percent compared to the previous year. According to the raw data, the rate of decline was 10.4 percent, but this rate was primarily caused by the fall of the Easter holidays to March, as there were therefore three less working days this month – the Ministry of National Economy (NGM) pointed out in its commentary on the latest statistical report on Wednesday. .

The performance of the industry was significantly affected by the shutdown due to the holidays, as well as the weakness of the weak European foreign markets, primarily the German economy. As a result, export activity decreased significantly.

It has been confirmed: the government will restart it in 2024 and further increase the rate of economic growth in 2025. In order to achieve this, it is essential to further expand the performance of the industry. The lasting recovery of the performance of the domestic industry is supported on the one hand by the invigorating internal demand, the establishment of real wages on a meaningful growth path, the gradual loosening of the caution of households due to falling inflation, thus the increase in consumption, and on the other hand the government’s measures to support investments, such as the Re-Industrialization of Gábor Baross Credit program, the Széchenyi Card Program, the Food Industry Supplier Development Program and the voluntary interest rate cap. In addition to all this, the home renovation program starting in June contributes to the increase in the volume of industrial production, NGM argued.