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The Minister for National Economy declared in Debrecen that economic growth will resume next year, expecting a 4.1 percent expansion in 2025, after a 2.5 percent growth in 2024. Márton Nagy emphasized the necessity of restoring consumption and investment, increasing labor market activity, and enhancing lending and export activities to foster growth.
In a presentation at the Chamber of Commerce and Industry of Hajdú-Bihar County (northeast Hungary), Minister Márton Nagy highlighted the urgency of transitioning Hungary’s automotive industry to electric vehicles.
He noted that four out of five conditions required for economic growth had already been met.
Mr. Nagy cited encouraging signs of consumption recovery, with retail sales and food consumption showing improvement, along with a 15 percent increase in domestic tourism. Investment is also picking up, with multinational companies like BMW and CATL completing developments, potentially starting production in Debrecen (eastern Hungary) next year.
Minister Márton Nagy speaking at the first event of an entrepreneurship development series. Photo: MTI / Derencsényi István
The labor market has shown signs of improvement, with increased activity among young adults and the elderly. Nagy emphasized the need for Hungarian workers to reduce inactivity, with the aim of raising the employment rate from 80 to 85 percent.
While market lending has resumed alongside state programs, the Minister identified a significant drop of eight percent in export activity, especially in the European vehicle market due to a slowdown in the transition to electric cars.
He stressed the importance of electric cars for Hungary’s economy and called for renewed momentum in the transition.
To achieve this, Nagy emphasized the need for coordinated efforts among the state, manufacturers, and private individuals. He highlighted the importance of developing infrastructure, including hundreds of thousands of electric charging stations across Europe, to support the transition.
The Minister also criticized the lack of a coherent European electric car strategy and stressed the importance of developing one during Hungary’s EU presidency. He also underlined the need for collaboration with car manufacturers to compete with global trends while avoiding protectionist measures.
In his presentation, Minister Nagy also discussed the situation in the corporate credit market and outlined support and loan schemes for small and medium-sized enterprises (SME).
Via MTI; Featured Image: Facebook / Audi Hungaria Győr