Ministry: Hungary’s government reducing public debt, maintains economic stability

Hungary’s government is further reducing the public debt and the budget deficit, keeping the country on a growth path both this year and the next, the finance minister said at a conference organised by Erste Group in Budapest on Tuesday.

Hungary’s development level has increased to 77.7 percent of the European Union average from 66.1 percent in 2010, allowing the country to overtake Portugal, Romania and Slovakia, among others, Mihály Varga said, according to a ministry statement. This gives the government the foundation it needs to manage the crisis caused by sanctions, Varga said.

Hungary’s economy grew by 4.6 percent last year in spite of the war in Ukraine and without the recovery funds, well above the EU average of 3.5 percent, Varga said. The government assumes a growth rate of around 1.5 percent for this year, “and next year we can return to the pre-pandemic growth path of around 4 percent”, he added.