Hungary’s government aims to avoid recession with an eleven-point action plan and new loan programs, according to the minister of economic development.
The measures of the government’s 11-point action plan and the new “factory rescue” guarantee and loan program could ensure that Hungary avoids recession while maintaining full employment and protecting families, the Minister of Economic Development stressed on Wednesday at an event to mark the 30th anniversary of Garantiqa Hitelgarancia Zrt. guarantee institution.
Support for energy-intensive SMEs, continuation of the Széchenyi Card program, the factory rescue program, extension of the interest rate freeze, creation of a national capital holding, the credit moratorium for agricultural companies, the tourism action plan, utility cost reduction of households and small businesses, maintenance of the food price caps and the household interest rate freeze, and the student loan interest rate freeze make up the action plan, Márton Nagy explained.
The GDP growth of 4.5-5 percent this year could be followed by 1-1.5 percent growth in 2023, while average inflation next year could be 15 percent, but the pace could slow to around 7-8 percent by December, he said.
In the long term, a new economic strategy model is needed, as geopolitical tensions and the energy crisis pose challenges for Hungary that a new model can address, he said, adding that the aim is to strengthen the economy’s ability to attract capital and to help domestic industry and the SME sector.
Featured photo via MTI/Koszticsák Szilárd