Despite the external pressures, the government's primary objective for the year remains deficit reduction and lowering the public debt.Continue reading
The Hungarian government is committed to achieving economic growth exceeding four percent in the current year, with a focus on fortifying the pillars of growth, according to Gergely Suppan, the Chief Economist at the Ministry of National Economy.
In contrast to the previous year, the anticipated growth for this year is expected to possess a more balanced structure.
One key determinant of successful implementation of growth-plans is the maintenance of the investment-to-GDP ratio at above 25 percent. This is crucial for sustaining the momentum of economic development. Significantly, a substantial influx of working capital (a record-breaking amount), has entered the country. Moreover, major investments, such as the establishment of car factories and battery plants, are currently underway, further bolstering economic growth.
Domestic investment is actively encouraged through strategic initiatives, including the extension of programs like the Széchenyi Recreation Card and the Baross Gábor Re-industrialization Loan Program.
Gergely Suppan highlighted the challenges posed by external price shocks, emphasizing the inherent difficulty in defending against them.
However, there is a positive trend in commodity and energy prices, which are currently deflationary, contributing to an improved economic outlook.
The normalization of inflation is also being supported by certain base effects, and the indicator is anticipated to converge towards the regional average in the upcoming period.
Via MTI; Featured Image: Pixabay