Economy & Policy

Hungary’s economic catch-up can continue

The Hungarian economy is on a stable growth path per most indicators.

Hungarian GDP growth could continue to exceed the EU average in the coming years, meaning convergence can continue to be achieved. The Hungarian economy can continue to grow faster than the EU-27 in the coming quarters and next year, said State Secretary for Economic Development and National Financial Services Máté Lóga at the 2022 Treasury Conference in Visegrad. 

Hungarian GDP growth was the sixth fastest in the EU. So the country was able to recover from the post-corona crisis period with stable economic growth, he said, adding that the key now is to maintain that stability and strengthen convergence. 

He said that there are two very important challenges in the future: One is the budget deficit, and the other is the issue of public debt, as economic policy must always follow the evolution of public debt since public debt affects a state’s room to maneuver and the extent to which it can raise money from the market if needed.

Not only in Hungary, but across the European Union, people need to rethink the competitiveness dogmas and economic interventions on competitiveness that have been preached in recent years, he said.

A priority for domestic economic policy is to make the current account deficit disappear in the future, Lóga stressed.

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