The decline in inflation will accelerate in the second half of the year, with the rate of price increases easing to single digits by the end of the year.Continue reading
Although the outlook for Europe is not favorable at the moment due to the prolonged war and sanctions, the Hungarian economy could return to growth in the second half of the year, Finance Minister Mihály Varga said at the inauguration ceremony of the new production hall of the Anda Present Group, which manufactures and imports promotional souvenirs, reports Világgazdaság.
Summarizing the current economic environment, Mihály Varga said that employment is at a record high with nearly 1 million new jobs created since 2010, and the unemployment rate of 4 percent is one of the best among EU countries. He added that
the domestic investment rate is currently the highest in the European Union, above 28 percent, and the high share of foreign working capital also confirms the attractiveness of the Hungarian economy.
Moreover, this attractiveness is now also stated by the major credit rating agencies in their reports. The Finance Minister added that since the end of Covid, we have been reducing public debt at double speed, which could fall below 67 percent of GDP next year, while the budget deficit will be reduced to below 3 percent.
Inflation has been falling steadily since January, and a single-digit level looks achievable even before the end of the year.
Mihály Varga stressed that one of the government’s priorities is to reduce regional disparities, so it is targeting development where it is most needed. He said that in such regions, investments that create new jobs are key, such as the HUF 2.5 billion development of Anda Present, which created 100 new jobs. The company currently has sales offices in 6 European countries and sells its products in 50 countries, with 85 percent of its turnover coming from exports.
Featured photo via Facebook/Varga Mihály