The output of the construction industry could expand by 10 percent this year, while the overall economy is expected to grow by 6–6.5 percent, Finance Minister Mihály Varga said at the closing general meeting of the National Association of Construction Contractors (ÉVOSZ) in Budapest on Thursday.
Varga said that while in the mid-2000s the construction industry accounted for 4 percent of the Hungarian economy’s output, this has now risen to 5.5 percent, with further growth expected. Among the challenges facing the construction industry, the finance minister highlighted the need for a supply of skilled workers, which he said would be helped by training, better work organization and rising wages.
He pointed out that the government has contributed to salary increases, as it will continue to reduce the tax rate on businesses by 4 percentage points in 2022, which includes a 2.5 percentage point reduction in the social contribution tax and the elimination of the vocational training tax. In addition, he said a 1 percent cut in the small business tax was important. Varga indicated that these measures together would lead to total tax cuts of HUF 750 billion in 2022.
Varga said that the seven-year planning period of 2021–2028 will start, with programs aimed at renewing the country’s asset base already being planned using the funds available here; he cited GINOP tenders as an example.
László Koji, President of ÉVOSZ, stressed that the construction sector’s output could reach HUF 5 trillion this year.