PM: next year, the Hungarian economy may grow above 4 percent again

By: Trademagazin Date: 2023. 01. 27. 10:51

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Thanks to the stability-strengthening measures, the Hungarian economy can avoid recession this year and grow above 4 percent again next year, said Finance Minister Mihály Varga at the event of the Christian Democratic People’s Party (KDNP) and the National Forum Association in Lakitelk, according to the ministry’s announcement on Saturday.

The Ministry of Finance (PM) told MTI that the politician highlighted at the event: the dangerous international environment and “the harmful effects of the sanctions” are already reflected in the credit rating ratings, but at the same time, Hungary is still ranked two grades higher than in the last decade at the beginning.

“The fact that the Hungarian economy proved to be resistant to the waves of the epidemic, the Russo-Ukrainian war and the challenges of the Brussels sanctions policy provides a basis for growth,” declared Mihály Varga, adding that according to the latest data, the average number of employees in 2022 was close to 4.7 million people, which is 60 thousand more than in 2021.
The Minister of Finance emphasized that the labor market is supported by the government’s measures to preserve jobs and encourage the creation of new ones. This is also why the unemployment rate is still below 4 percent, he said.

The GDP expansion can also be “pulled” by the strengthening performance of industry, the construction industry and investments, he explained. According to the announcement, the minister pointed out: the government has continuously announced stabilization measures from May 2022 in order to keep the national debt and the budget deficit on a downward path.
Thanks to these, the deficit target for 2022 was met, while the state debt was reduced at a faster rate than expected – pointed out Mihály Varga, highlighting that the budget deficit will be improved to 3.9 percent this year, and the ratio of state debt to gross domestic product to below 70 percent.

They added that the government continued to prepay the state debt this year as well: after the successful bond issue, Hungary paid off HUF 370 billion in debt in January. The move improved the maturity of the national debt and strengthened Hungary’s financial stability, they wrote.