“The effects of the government measures introduced in the recent period are being felt in practically every sector of the economy, and accordingly the gross domestic product increased by 5 percent, in excess of analyst’s expectations, in the third quarter of 2019”, Minister of Finance Mihály Varga declared in assessment of the latest statistical data. Growth during the first 9 months of the year was 5.1 percent overall.

“Since the turnaround in 2013, the Hungarian economy has been on a balanced growth trajectory, in the background of which are constantly stable foundations, in contrast with the growth measured in the mid-2000s, behind which was increasing debt”, Mr. Varga pointed out, highlighting the fact that this is to an increasing extent also being acknowledged by Hungarian and international analyst organisations, which are successively improving their forecasts for this year.

Photo: Ministry of Finance

“Most recently, the International Monetary Fund (IMF) improved its prognosis by one percentage point, meaning the organisation, the European Commission and the EBRD are now all expecting growth of 4.6 percent, which according to the government’s estimates could now be even higher, at 4.8 percent”, Mr. Varga pointed out.

“Behind the continued, outstandingly high figure lie predominantly the government measures introduced within the fields of employment and competitiveness, as well as to facilitate housing and promote investment, and aimed at the efficient utilisation of EU resources”, the Minister said in summary. As he explained, in addition to the increase in industrial and construction industry production, and in export performance, the service sector contributed to the greatest extent to the current rate of growth, thanks to the increase in public consumption that is occurring parallel to a two-digit increase in earnings.

Photo: Ministry of Finance

According to the available data, in EU comparison the performance of the Hungarian economy in Q3 of 2019, similarly to previously, is once again among the bloc’s frontrunners, exceeding the 1.4 percent average of the EU’s member states by a factor of 3.5, as a result of which the gross domestic product has now increased by over 30 percent since 2010.

In the interests of maintain the current level of growth, the government is paying particular attention to European and global economic and geopolitical processes, and on challenges that are arising at domestic level, and particularly within the field of the job market. The Economy Protection Action Plan’s tax- and administration-reducing, and competitiveness-increasing employment policy measures announced yesterday, and the new economic protection measures expected next spring, provide a tangible response to these challenges.