The conditions for sustained growth exceeding 4% are missing from the Hungarian economy, therefore, the barriers of growth, primarily bureaucracy, must be dismantled, central bank governor György Matolcsy said at a conference in Budapest on Wednesday. In order to dismantle the second biggest obstacle to growth, he urged for European Union investment funding to be channelled primarily to Hungarian-owned small and medium-sized companies.This is supported by the coordination of the central bank’s Funding for Growth Scheme and with EU funding as well as by the central bank’s monetary policy,he said. Matolcsy said the Hungarian credit institution system is also a barrier to growth, this must also be restructured.
Meanwhile the the Central Statistical Office (KSH) revealed favorable data on Hungarian economy. The average unemployment rate among Hungarians between the ages of 15 and 74 was 7.4% in July-September. The jobless rate was down from 7.6% in June-August and down from 9.8% in the same period a year earlier. The number of unemployed averaged 332,600 in July-September. The figure was down 8,200 from the previous three-month period and down 101,600 from the same period a year earlier. KSH noted that the National Labour Office registered 380,200 job-seekers in Hungary at the end of September 2014, down 21.5% from twelve months earlier.
Retail sales in Hungary also rose by 2.5% year on-year in August according to calendar year-adjusted data, KSH confirmed in a second reading on Wednesday, revising data published earlier. Retail sales were up 2.0% according to unadjusted data, which KSH revised down from 2.5% in the first reading published on 3rd of October.