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Finance Minister: Hungary’s Economy Relaunching Faster than in Other EU Countries

MTI-Hungary Today 2021.07.14.

Brussels has recognised that Hungary’s economic relaunch is happening at a faster pace than in the EU countries, Mihály Varga, the finance minister, said in a statement after a meeting of EU finance ministers (ECOFIN).

The European Commission has made a major revision to its Hungarian growth forecast, from 5 percent to 6.3 percent this year, according to a Ministry of Finance statement released on Tuesday. Growth of 5 percent is expected next year as opposed to forecasts of 4.5 percent for the bloc as a whole. “We’re a step ahead of other EU countries,” Varga said.

The European Commission expects member states to return to pre-epidemic levels of growth by the end of 2022, he said, adding that this could be attained in Hungary this year.

The government, he added, is striving to hit its target of 5.5 percent economic growth. Referring to the outcome of a G20 meeting of finance ministers and central bank governors, Varga said Hungary far from accepted the related tax proposals of the Organization for Economic Co-operation and Development (OECD), adding that the government would continue to reject any kinds of solutions that curb fair tax competition.

Hungary Inflation Spike Continues in June
Hungary Inflation Spike Continues in June

ING Bank chief analyst Péter Virovácz said inflation in June was significantly higher than expected by the NBH which means there is a higher chance that in July the central bank raises its base rate.Continue reading

Meanwhile, Varga said ECOFIN ministers have given the go-ahead to the Council of Ministers to adopt the first 12 national recovery plans assessed by the European Commission.

featured image via Noémi Bruzák/MTI