Orbán cabinet secretary shared optimistic plans about next year’s GDP growth

Adapting to the electric vehicle segment is “crucial” for the automotive industry, Máté Lóga, the state secretary for economic strategy, said at a conference organised by the Joint Venture Association in Budapest on Thursday.

Lóga noted that the automotive industry, one of the pillars of the European economy, played an outsized role in Hungary’s competitiveness.

He said Hungary aimed to be a “bridge” linking automotive industry know-how from the East and the West.

He added that the pandemic, the war in Ukraine and the energy crisis had exacerbated Europe’s long-standing competitiveness problems.

Addressing the outlook for Hungary, Lóga said inflation had fallen back into the central bank’s tolerance band, but a growth rebound on external markets remained to be seen as the German economy was in the doldrums. According to HVG, Lóga said Hungary’s GDP growth should reach 3% next year.

He pointed to the automotive industry’s “key role” in boosting competitiveness in the EU and noted a ban on internal combustion engines in force from 2035. He said the increasing market share of EVs had slowed after years of growth and suggested decision-makers and car makers could provide a catalyst for further growth.

Orbán cabinet says no on punitive tarrifs

Hungary’s government believes in international competition, instead of punitive tariffs, he said.

Lóga said battery investments in Hungary, the result of partnerships between automotive industry companies in the East and the West, would cause battery manufacturing capacity in the country to quintuple by the end of the decade. He added that the country would become the fourth-largest battery maker in the world.

Fielding questions at a talk after his presentation, Lóga said consumption, investments and exports could be the biggest engines of GDP growth in the coming year. He added that SMEs would be the focus of investments in the coming year to year-and-a-half.

He noted recently announced programmes for SMEs and said the government aimed to use capital investment, credit and grants to boost propensity to make investments.

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