Facts & Statistics

The economy could grow by 7 to 7.5 percent this year

Growth in Hungary was higher than the EU average, almost 18 percent in the second quarter and 7.6 percent in the first half of the year, FM Varga said.

The economy was able to quickly regain the growth capacity it had before the epidemic, and GDP is expected to grow by 7–7.5 percent this year and 5.5–6 percent next year, Minister of Finance Mihály Varga said at the American Chamber of Commerce’s business forum in Budapest.

The country’s economy has surpassed its performance in 2019 without the tourism sector — which accounts for 8–10 percent of GDP — not yet reaching pre-epidemic levels, he noted.

Varga said he sees four sources of danger that could adversely affect the economic outlook: soaring energy prices, rising inflation, a deteriorating COVID-19 situation, and shortages of raw materials.

The minister said 6 percent of GDP has been spent by the state to encourage investments, and the investment rate in Hungary is currently 27.5 percent, which puts Hungary at the forefront of the EU. He also noted that there are now 4.7 million people working in the country, which is one million more than in 2010.

With the successful issuance of foreign currency bonds, the government has been able to make up for the missing EU funds, Varga also said. He added that negotiations with the European Union on its HUF 2.5 trillion funding program are still ongoing due to political disputes.

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