The government’s measures seeking to boost the economy are a success; also in the second quarter of 2019, the performance of the Hungarian economy grew dynamically, by 5.1 per cent, Finance Minister Mihály Varga stated at a press conference.

The Finance Minister pointed out that the rise in employment and wages, a steady increase in investments and retail consumption and excellent export figures are, among others, responsible for the expansion that repeatedly exceeded analysts’ expectations.

DownloadPhoto: Ministry of Finance

The performance of the Hungarian economy grew by 5.1 per cent according to seasonally adjusted data that also takes calendar effects into consideration, and as a result – according to the available data – Hungary is at the vanguard of the EU, exceeding the 1.3 per cent average of European Member States almost four-fold, Mr Varga highlighted.

He added that while in countries of the European Union signs of slowing down are emerging, the expansion of the Hungarian economy is supported by multiple factors, and in contrast to the period of socialist governance, it is taking place on the basis of stable and balanced foundations, rather than on the basis of a rising debt rate.

Photo: Ministry of Finance

The measures implemented by the government, including in particular the six-year wage agreement, the government’s competitiveness programme, the promotion of housing for Hungarian families and the economic environment which serves as an incentive for investment have, in combination, contributed to the current growth by 1.6 percentage points. Additionally, on the production side, industry, the construction industry and the services sector, too, boosted the latest expansion. As a result, in the first half of this year, the output of the Hungarian economy increased by 5.2 per cent, and by some 30 per cent since 2010.

Recently both international institutions and Hungarian financial organisations have upgraded their growth forecasts for the Hungarian economy one by one, and in consequence, in harmony with the government’s expectations, they are now calculating with a growth rate above 4 per cent, Mr Varga pointed out.

He said, at the same time, during the coming months, all at once we will have to take account of the development of processes in the world economy, including Britain’s departure from the EU, and factors which could thwart the expansion of production capacity. The Economy Protection Action Plan seeks to address these challenges, and will enable the Hungarian economy to continue to achieve a dynamic, balanced and sustainable growth minimum two percentage points above the EU average.

(Ministry of Finance / MTI)