Hungary’s government will stand by its growth target for this year and could prepare an economic stimulus package in the autumn, the economy minister told daily Magyar Hírlap. The 2.5% GDP growth target in this year’s budget is achievable, but growth has to be strengthened, Mihály Varga (photo above) told the paper.
The capability Hungary has to grow its economy must be strengthened, competitiveness must be improved and structural changes must contribute to this, he said. There are significant reserves in the labour sector and some other sectors, such as green economy, healthcare, specialised machinery and tourism, have the potential for stronger growth, he added. Growth could also be accelerated among SMEs and in some areas of industrial development, he said.
Varga also mentioned fiscal tools to support capital markets and said the government has prepared a proposal it is negotiating to boost the market capitalisation of the Budapest Stock Exchange and raise the number of issuers on the bourse. Varga said the government’s 2017 budget bill involved compromises but “keeps things in proportion”. The 2.4 percent-of-GDP deficit target does not mean the government has drafted an election budget, he added.
The Central Statistical Office (KSH) reported previously that Hungarian gross domestic product fell sharply in the first quarter of 2016, growing only by an annual 0.9% in the first three months of the year. According to the Economy Ministry, the setback is temporarily as it was mainly due to the winding up of developments financed from European Union resources.
via hungarymatters.hu and magyarhirlap.hu