Gergely Suppan: the increase in consumption may be the engine of economic growth this year

By: Trademagazin Date: 2024. 01. 19. 15:13

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The increase in consumption can be the engine of economic growth in Hungary this year, and a high investment rate will also continue to be needed – said the leading economist of the Ministry of National Economy (NGM) in the current program of the M1 channel on Thursday evening.

Gergely Suppan predicts a real wage increase of around 7 percent on an annual basis, and in his opinion such a level of change will significantly help the Hungarian economy. Based on the wage offers for 2024, a salary increase of over 10 percent can be considered common domestically, while inflation may be lower than 5 percent on an annual basis this year, he explained.
He added that the increase in food prices has not only moderated, the prices of many products have even decreased compared to last year’s level.

Due to the favorable prospects, the specialist also sees a good chance for the strengthening of consumer confidence, in his opinion, the turnaround was already visible in housing construction and real estate transactions at the end of 2023.